Westpac aims for stable growth this year

WESTPAC bank is looking for a more stable growth to its business this year, according to senior economist Justin Smirk.
Smirk explained to The National that the bank’s performance last year and outlook for this year.
“We think that there are some opportunities in terms of investments within Papua New Guinea,” he told The National.
“The reforms that are happening within PNG are a very positive step.
“There are some scope around given we have delays in these very large projects were growth is going to be constrained and there are risk around where it’s going to be heading.
“There are also some scope around policy responses so the longer term reforms are very important.
“But in the short term, there is a need for some fiscal stimulus to help the domestic economy ticking over.
“Also, a need for relieve in the monetary side because foreign exchange remains a big constraint in the economy here.
“The Kina is actually appreciated against most currencies because it has stayed level with the US dollar.
“So there are some scope to ease the pressure of Kina to allow more foreign exchange into the economy.
“There also is some scope for both fiscal can monetary policy to be in the backdrop to support these difficult period over the next 12 to 18 months.”
Smirk said last year was a disappointing year for most businesses in Papua New Guinea.
“Businesses did not achieve what they hoped to achieve,” he said.
“Given the environment, they have had to revise down their expectations.
“They are not quite as optimistic as they have been in terms of investments, profits employment.
“This suggests that there will be some tightness around investment cycle and employment this year.
“However if you compare through time, there is still a positive expectation for profits to grow.”