Despite some weak headline numbers, Papua New Guinea’s economy is set to see a recovery in 2017, following elections in June and July. The depreciation of then kina and a shortage of US dollars have slowed imports and led to pockets of strength, while robust activity at the small and medium-sized enterprise level and in the informal sector is being observed. The near- to medium-term conditions are right for GDP to edge back up to a more comfortable range. Indeed, key statistics, such as the current account, which has been positive since 2014, are indicating a return to balance.
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