Growth may accelerate

By NATHAN WOTI
PAPUA New Guinea’s economic growth was slower than anticipated in 2023 at 2.7 per cent, however, it is expected to accelerate to 5.3 per cent this year.
This forecast was made by Credit Corporation chief executive officer Danny Robinson during the announcement of the Group 2023 Financial Year.
“The accelerated growth would come as a result of improving output in the nation’s resources sector and a significant pipeline of government capital projects,” he said.
“We will continue to focus on strengthening operational performance through prudent and disciplined management of credit risks, increasing share of wallet with existing customers via expanded digital product offerings; up-skilling our staff and transitioning to being a niche commercial bank,” he said.
The Group’s performance for financial year 2023 was strong as it hoped to benefit from the growth for 2024 on the back of the reopening of Porgera gold mine and construction of other major resource projects.
Meanwhile, for the rest of the other Pacific island countries, the Group highlighted a steady growth in key players such as Fiji, Solomon Islands and Vanuatu.
According to Credit Corp, financial outlook for the Pacific sees Fiji’s economic growth forecast at 3.92 per cent with a strong recovery in tourism offset by weak production in a number of sectors of the economy.
The Solomon Islands economy continues its recovery from the pandemic. Gross domestic product (GDP) growth of 2.43 per cent is forecast for 2024, supported by the flow-on benefits from the 2023 Pacific Games in Honiara and the national elections.
Vanuatu’s economy is expected to rebound from a challenging position in 2023 resulting from the damage caused by tropical cyclones.
However, the International Monetary Fund has forecast real GDP growth of 2.64 per cent, supported by an anticipated increase in visitor arrivals.