PNG keeps eye on Chinese data

BUSINESSES in Papua New Guinea are cautiously watching the latest economic data from China amid fears a slowdown in its demand for its resources could hurt mining projects.
Figures for August show China’s imports fell, exports grew only moderately, and there are indications inflation may be on the rise, prompting concerns the country may not meet its 2012 growth target of 7.5%.
That’s led to concerns among resource-rich nations such as PNG, which rely on commodities exports for a large part of their economic growth.
President of Port Moresby’s Chamber of Commerce, Ron Seddon has told Radio Australia’s while PNG doesn’t do a lot of business with China, a decrease in demand there could affect global markets.
Wayne Golding, who represents PNG’s interests on the APEC Business Advisory Council, says extraction industries still performed strongly during the global financial crisis.
But he says if China’s slowdown continues, major mining companies may begin deferring projects in PNG.