Report paints conservative outlook

THE International Monetary Fund report has painted a more conservative outlook of the country’s economic projections.
“PNG’s economic forecast is deliberately held conservative over the medium term,” said a brief on a summary statement from the IMF executive director Heenam Choi.
The statement was part of several documents released from the 2017 Article IV Consultation with PNG last year.
“According to authorities’ projections, real growth will average 2.4 per cent, with inflation expected to average 5.7 per cent over the medium-term,” the brief said.
“The growth projection assumes subdued commodity prices and excludes all potential major resource projects.
“The downside risks to the inflation projection, includes exogenous supply-and-demand shocks or further depreciation of the currency. The conservative economic outlook is to ensure the authorities’ macroeconomic policies are achievable over the projection horizon.”
Choi said PNG’s immediate challenge was to restore macroeconomic stability and introduce reforms that will encourage growth.