Despite some weak headline numbers, Papua New Guinea’s economy is set to see a recovery in 2017. Depreciation of the kina and the shortage of US dollars have slowed imports and led to pockets of strength. Robust activity at the small and medium-sized enterprise (SME) level and in the informal sector is being observed, while key statistics, such as the current account, are indicating a return…
Papua New Guinea’s banking sector is sound, stable and profitable. Despite slow economic growth in the country in recent years, institutions have managed their exposures well and entered the current weak patch in a strong position. They are generating good results and investing in future growth. Regulation is solid and improving, with the central bank updating key laws and bringing the sector…
The international position of Papua New Guinea has improved in recent years as the country continues to benefit from a number of positive trends. A stabilisation in commodity prices, strong output from the country’s major projects and an end to the El Niño drought have brought major trade indicators back into line. The lack of dollars and the weak kina have helped as well by boosting exports…
After a flurry of activity in 2015, including a dual-listing initial public offerings (IPO), a key stock returning to the exchange after suspension and the writing of a series of major reforms, Papua New Guinea’s capital markets are rebounding. The benchmark stock index started to climb again in 2016 and continued to do so through early 2017, following years of decline since hitting record…
Insurance in Papua New Guinea remains a sector of significant opportunity. With a low penetration rate – estimated at under 2% – and the overall economy set for rapid growth as a result of ExxonMobil’s liquefied natural gas (LNG) project, demand is projected to increase over time. Other trends and events also suggest good prospects. A new acting insurance commissioner has been appointed…
Commodity price fluctuations have rendered sporadic development across Papua New Guinea’s mining segment in recent years. Nevertheless, a diverse basket of minerals continues to attract international investors, who remain eager to unearth the nation’s resources, which have fuelled economic expansion. However, a lack of hard infrastructure and challenging natural conditions continue to escalate…
Papua New Guinea’s energy sector has undergone a dramatic transformation over the previous decades, with liquefied natural gas (LNG) becoming the sector’s biggest growth driver. The multi-billion-dollar PNG LNG project is now operating well above nameplate capacity, and LNG export revenues are expected to remain a major pillar of the economy in the coming decades. Ongoing exploration activities…
Challenging, disparate geography and low population density have created a unique set of challenges for Papua New Guinea’s transport industry. Costs are high across all three major modes of transport, and a lack of connectivity presents a serious challenge to doing business outside of Port Moresby. The country’s recent construction boom in the lead up to ExxonMobil’s $19bn liquefied natural…
The business climate for real estate stakeholders in Papua New Guinea deteriorated in 2017, with rental rates at upmarket residential properties in the capital, Port Moresby, falling by as much as 50% since 2016. A macroeconomic slowdown and lower numbers of expatriate employees living in the country will weigh on growth in 2017, with agencies reporting that hundreds of units are sitting empty…
Although it recorded double-digit expansion during the boom years of 2010 to 2013, Papua New Guinea’s construction industry faces a challenging operating environment in 2017. Growth contracted in 2014 following the completion of a major liquefied natural gas (LNG) project, and contractors have since struggled to regain the momentum of earlier in the decade. The sector rebounded in 2015 and…
