PNG economy diverse: Barker

THESE are very difficult economic times but in some ways, Papua New Guinea is currently better off than countries with narrower economies, Institute of National Affairs (INA) executive director Paul Barker says.
Barker, when responding to queries from The National, said other countries for example were almost exclusively dependent upon tourism, oil or a single commodity. “Papua New Guinea’s economy is larger than other Pacific nations, but also more diverse,” Barker said.
“During 2020 some of these commodities have suffered badly from loss of global demand and low prices, including: oil and gas; tourism, hospitality and air travel; and some agricultural crops, notably vegetable oils, which are also partial substitutes for oil.
“Some economic activities, such as fresh produce and other cash crops, have been disrupted by domestic lockdowns and transport impediments, despite prices generally remaining firm, including for coffee and cocoa,” he said.
“A few economic activities have even enjoyed something of a boom, notably gold, which rose about US$2,000/oz (K6,839.22) at the end of July, as it’s seen as a traditional safe haven in the face of uncertainty in other markets.
“E-commerce and retail, including pharmaceuticals, are significant employers, have performed better and in some cases well, even if e-commerce remains relatively small in PNG in relation to its potential and compared with other countries, which enjoy faster and more affordable internet.
“So, although PNG’s economy has been hit relatively hard, and is suffering from recession during 2020, there is some balance, with most livelihoods sustained, although some were badly impacted, particularly during the first lockdown.”