O’Neill outlines economic challenges

 PRIME MINISTER Peter O’Neill has highlighted the global economic challenges facing commodity exporting countries and outlined how Papua New Guinea is confronting these pressures.

O’Neill said one of the most important matters in dealing with these issues was for the Government to be direct with citizens and the business community and outline its strategy.

“Like any emerging economy, we are faced with global challenges, particularly from the lower commodity prices,” he told the National Press Club of Australia in Canberra last Wednesday. “I do not want to sugarcoat the pressures that we are facing.  

“We have an open dialogue so that we can understand how best we can confront these challenges.”

While the price of commodities has risen in recent weeks, with oil now back over US$38 per barrel, O’Neill gave an overview of the impact of low commodity prices.

To effectively manage these global pressures, O’Neill said the Government revised budget estimates downwards and the country must live within the new normal.