PNG Economy Strong, But Fiscal Pressures Growing
PNG maintained its position as one of the fastest growing economies in Asia and the Pacific, according to the latest edition of the Pacific Economic Monitor, issued today by the Asian Development Bank (ADB). The ADB report says preliminary GDP figures show growth of 9.2% in 2012, on the back of 11.1% growth in 2011. By June 2012 the number of private sector jobs in the economy had risen by 5%, building on a doubling of employment opportunities over the last decade. The Monitor notes that a number of factors point to a more challenging economic environment in PNG in 2013. In particular the 2013 $US6.5 billion national budget will be accompanied by a significant slowdown in government revenue growth over the medium term, as revenue from declining mining and oil output will offset modest growth in consumption, income, and company taxes. “As fiscal pressures emerge, it will be critical for the government to follow through with its 2013 Budget plan to wind back expenditure growth in 2014 an