Growth revised to 8.7pc

 PAPUA New Guinea’s growth is expected to be 8.7 per cent this year, with the overall East Asia Pacific region projected to grow 6.6 percent, from 6.8 per cent last year, a World Bank report says.

The East Asia Pacific Economic Update yesterday highlighted that the downward revision of PNG’s gross domestic product (GDP) growth forecast from April’s forecast was mainly due to lower international commodity prices. 

April’s report forecast expected the GDP to be at 16 per cent, with LNG production expected to peak next year rather than this year. 

However, the recent update said East Asia remained one of the main growth drivers of the world economy, accounting for nearly two-fifths of global economic growth.  

World Bank East Asia and Pacific Regional vice-president Axel van Trotsenburg said: “Growth in developing East Asia Pacific continues to be solid, but the moderating trend suggests policy makers in the region must remain focused on structural reforms that lay the foundation for sustainable, long-term and inclusive growth. 

“These reforms include regulatory improvements in finance, labour and product markets, as well as measures that enhance transparency and accountability. 

“These policies will reassure investors and markets and help sustain growth that can help lift people out of poverty.” 

“Pacific Island countries would be seeing moderate growth in 2015.  The update looked at the challenging global environment facing the region. 

“The recovery in high-income economies remains gradual, global trade is growing at its slowest pace since 2009, and the widespread slowdown in developing countries has intensified, particularly in commodity producers affected by lower commodity prices.

“Performance trends across the East Asia region are diverse.”