Weak global growth, commodity prices affect economy, meeting told

 By Junior Ukaha

THE weak global growth, fall in commodity prices and the drought have affected the national economy, a breakfast meeting has been told.

Stephen Beach, a partner with international accounting firm Price Waterhouse Coopers, addressed the business community in Lae during a breakfast yesterday.  

The firm, and the Lae Chamber of Commerce and Industry, organised the event to give an insight to businesses in the city on the implications of the 2016 national budget on the economy.

Beach said “lower than expected global growth and commodity price volatility” and “natural phenomena such as El Niño and its possible impacts on agricultural commodity growing conditions, water and electricity supply” as predicted in the 2015 budget had become a reality.

He listed the disruptions to mining, petroleum and gas operations, and loss of fiscal discipline including the possible emergence of off-budget expenditure pressures.

Bach said the 2016 Budget aimed at address the country’s development agenda and insulate it from declining government revenues. “(The budget shows) commitment to ongoing fiscal discipline, structural reforms, new revenue measures and expenditure efficiency gains.” 

He said the budget alluded to the structural reform of State-owned Enterprises.