O’Neill: PNG managing economy prudently

 PRIME Minister Peter O’Neill says the country is managing the challenges brought about by lower global commodity prices.

He told the PNG Mining and Petroleum conference in Port Moresby that like other nations around the world, Papua New Guinea was facing hard times driven by an uncertain international economic environment.

He said while the other countries were in a desperate situation, the Government was ensuring that its economy was stable through fiscal discipline.

“In the past year, the weighted average kina price of PNG exports, excluding LNG (liquefied natural gas), declined by 13.7 per cent,” O’Neill said.

“Mineral export prices declined by 13.3 per cent, and the agriculture, log and fisheries export price declined in value by 15.2 per cent.

“Our Government is doing its best to ensure that our economy remains sound so that we can emerge from the current global condition in a stronger position.

“To achieve this, macroeconomic stability is paramount. 

“The recent 2015 Supplementary Budget, and 2016 Budget, reflect our Government’s commitment to fiscal discipline. 

“The budget is tough on non-essential government spending, while it maintains essential services to our communities, particularly health and education.

“This is a business-friendly budget that has no surprises, and it is a budget that seeks to ensure that investment in critical infrastructure is maintained.”  

He said interest rates were stable, inflation was manageable and the exchange rates were not fluctuating as they used to.