Growth target realistic

 TREASURER Don Polye said yesterday the Government has remained on track to achieve its economic growth target this year.

Responding to media reports on Monday attributed to the Central Bank suggesting that the GDP growth would drop from a forecast of 6.1% to 5% this year, Polye said the bank was entitled to be conservative with their estimate.

“In line with their monetary policy approach, I guess they are entitled to be conservative.

“As a Government, we are doing all we can to grow the economy, against the backdrop of declining commodity prices, and the winding down of the PNG LNG project construction phase this year.

“To record a 6.1% growth in the first six months is a very good result.

“Our capital works programme, delayed due to procurement issues, is now picking up.

“At the programme gathers pace, it will stimulate growth in the second half of the year, as we fully implement the 2013 Budget. 

“This will more than make up for the slowdown due to PNG LNG project construction phase wind-down.

“In fact, the LNG project construction phase wind-down has been progressive, and we are working with the project developer to ensure that we absorb some of the workforce coming off this phase into our capital works program.

“So we are very optimistic about the performance about our economy in the second half of the year,” Polye said.