Papua New Guinea may encounter 'resource curse'

2018 ◽  
Keyword(s):  
Papua New Guinea ◽  
Prime Minister ◽  
Resource Curse ◽  
New Guinea ◽  
Business Environment ◽  
Asia Pacific ◽  
Gdp Growth ◽  
Content Type ◽  
Recent Policy ◽  
Economic Outlook

Subject The economic outlook for Papua New Guinea. Significance Rating agency Moody’s on March 23 shifted Papua New Guinea (PNG) to 'negative watch', a further indication of the economic challenges facing the re-elected Peter O’Neill government as it prepares to host the Asia-Pacific Economic Cooperation (APEC) summit in November this year. PNG in February suffered its largest earthquake for nearly a century in areas surrounding the largest resource projects in the country. Impacts Despite a planned major expansion in LNG production, recent policy decisions suggest a troubled business environment. Reversals in economic policy, combined with the earthquake, will further depress GDP growth. Prime Minister Peter O’Neill is weaving together a large coalition which should cement his position until at least after APEC. Foreign exchange shortages will harm growth and discourage investment, due to fears that firms cannot pay dividends to foreign shareholders.

Papua New Guinea economy set to 'muddle down'

2016 ◽  
Keyword(s):  
Papua New Guinea ◽  
Foreign Exchange ◽  
Prime Minister ◽  
Commodity Prices ◽  
New Guinea ◽  
Government Budget ◽  
Content Type ◽  
History Of ◽  
The Government ◽  
Economic Outlook

Subject The political and economic outlook for Papua New Guinea. Significance Despite combined GDP growth of nearly 20% over the last two years, the fall in commodity prices has exposed the downside risks in the government's economic strategy and seriously damaged its political credibility. A government cash crisis driven by a 20% fall in expected revenues in 2015 is fracturing the country's politics. Papua New Guinea (PNG) has a history of getting through crises, although this has usually involved a changing of the prime minister and an IMF programme. Impacts The government budget crisis and foreign exchange shortages will hurt growth in 2016. There is a risk of forced sale of foreign-owned businesses and land. Foreign exchange shortages may be the greatest risk to businesses.

Papua New Guinea in 2016

Asian Survey ◽  
2017 ◽  
Vol 57 (1) ◽  
pp. 194-198 ◽  
Author(s):  
Ronald May
Keyword(s):  
Civil Society ◽  
Natural Gas ◽  
University Students ◽  
Papua New Guinea ◽  
Prime Minister ◽  
New Guinea ◽  
Gas Production ◽  
Liquefied Natural Gas ◽  
Gdp Growth ◽  
Step Down

Prime Minister Peter O’Neill came under continuing pressure to step down pending resolution of corruption charges but resisted demands from university students and civil society groups and convincingly defeated a parliamentary vote of no confidence. Papua New Guinea experienced a further decline in GDP growth and faced landowner threats to shut down liquefied natural gas production.

Papua New Guinea's economy is set to weaken

2019 ◽  
Keyword(s):  
Natural Gas ◽  
Papua New Guinea ◽  
Foreign Investment ◽  
Aggregate Demand ◽  
New Guinea ◽  
Macroeconomic Policy ◽  
Gas Oil ◽  
Content Type ◽  
Investor Confidence ◽  
Economic Outlook

Subject The economic outlook for Papua New Guinea. Significance The outlook for the leading commodity exports from Papua New Guinea (PNG) -- natural gas, oil and gold -- remains positive, but by most counts the economy is deteriorating and will worsen as Asia’s aggregate demand for resource commodities falls. Impacts The new government may pass legislation to obtain higher returns to PNG from foreign investment. Perceived corruption and declining governance will directly damage investor confidence. As financial and economic pressures mount, there may well be changes in macroeconomic policy.

Nigeria’s Buhari will sustain protectionist course

2019 ◽  
Keyword(s):  
Economic Policy ◽  
Business Environment ◽  
Electricity Supply ◽  
Gdp Growth ◽  
Foreign Reserves ◽  
Limited Effect ◽  
Content Type ◽  
Policy Measures ◽  
Policy Direction ◽  
Recent Policy

Subject Nigerian economic policy. Significance Predicting the policy direction of President Muhammadu Buhari’s second term appears complicated given inconsistencies in key appointments to his administration. His new cabinet is composed of political loyalists unlikely to oppose his protectionist agenda. Conversely, Buhari has revamped his economic team to include free marketeers and staunch critics of his economic record thus far. However, recent policy measures suggest that the latter will have limited effect on the president’s underlying agenda. Impacts Plans to comply with OPEC production cuts will further worsen the outlook for foreign reserves and the naira. The slight acceleration of GDP growth to 2.3% this year may not be sustained into 2020 if protectionist policies persist. Improvements in the overall business environment ranking mask ongoing weakness in crucial indicators such as electricity supply.

Political instability will worsen in Papua New Guinea

2016 ◽  
Keyword(s):  
University Students ◽  
Papua New Guinea ◽  
Foreign Exchange ◽  
Prime Minister ◽  
New Guinea ◽  
Content Type ◽  
Ethnic Tensions ◽  
Investment Opportunities ◽  
Port Moresby ◽  
International Financing

Subject The outlook for politics and security in Papua New Guinea. Significance The police shooting of unarmed university students in the capital, Port Moresby, on June 8 has reverberated around the country, with ethnic tensions emerging in other campuses and growing discontent at Prime Minister Peter O'Neill's actions and those of the police. Behind the violence are growing political frustrations. Sovereign and political risk has increased as O'Neill is not perceived as responding appropriately to accusations of corruption and economic mismanagement. Impacts Unrest will cause minor disruptions to businesses, but the police and army will keep discontent under control. Nationalistic land, agriculture and business policies may reduce investment opportunities, except for well-connected large investors. The uncertainty has diminished prospects of international financing to ease government cash and foreign exchange shortages.

Investors will face more scrutiny in Papua New Guinea

2019 ◽  
Keyword(s):  
Papua New Guinea ◽  
Oil And Gas ◽  
Prime Minister ◽  
New Guinea ◽  
Policy Formulation ◽  
Content Type ◽  
Change Of Direction ◽  
Finance Minister ◽  
Take Back ◽  
The Government

Subject The political outlook for Papua New Guinea under a new government. Significance Legislators have elected former Finance Minister James Marape as prime minister. He replaces Peter O’Neill, who resigned ahead of a no-confidence vote. Marape has promised to “take back the economy” and a “change of direction” in handling major resource extraction projects to achieve better returns for the government and people. Impacts The change in leadership may result in better governance and more consultation on policy formulation. Dealing with disgruntled landowner groups poses real problems for resource project management. The country will remain heavily dependent on foreign investment in resource projects, particularly mining, oil and gas.

Papua New Guinea economy will deteriorate further

2017 ◽  
Keyword(s):  
Central Bank ◽  
Papua New Guinea ◽  
New Guinea ◽  
The Political ◽  
National Elections ◽  
Government Bonds ◽  
Content Type ◽  
Investor Confidence ◽  
The Face ◽  
Economic Outlook

Subject The political and economic outlook for Papua New Guinea. Significance Papua New Guinea (PNG) is due for its five-yearly national elections in mid-2017 and the outcome now appears much less certain than a year ago in the face of growing economic and political challenges. PNG’s central bank has effectively started printing money by purchasing government bonds not bought by the private sector. This foreshadows longer-term problems but will help hide PNG’s underlying cash crisis. Impacts A collapse in domestic revenues points to a severe economic contraction. The 2017 budget proposes a path to smaller deficits by 2021, but suffers from major errors and unrealistic assumptions. The central bank’s printing of money and suppression of the IMF report will damage international investor confidence.

Papua New Guinea investment climate deteriorates

2015 ◽  
Keyword(s):  
Natural Gas ◽  
Papua New Guinea ◽  
Aggregate Demand ◽  
New Guinea ◽  
Investment Climate ◽  
Medium Term ◽  
Content Type ◽  
Gdp Growth Rate ◽  
The Government ◽  
Economic Outlook

Subject Political and economic outlook for Papua New Guinea. Significance Papua New Guinea (PNG) has benefitted from over a decade of buoyant economic growth, culminating in a forecast GDP growth rate of 15% in 2015. However, the outlook for PNG's major commodity exports (natural gas and gold) is now declining as aggregate demand for resources falls in China and elsewhere in the region. This will lead to a fall in the growth of overall government revenues. Impacts The price for spot market liquefied natural gas exports to Asia is likely to decline. The government will extend its overall fiscal deficit despite announced intentions to reduce debt under the medium-term fiscal strategy. The much-publicised sovereign wealth fund, announced several times but still not implemented, will continue to languish. Diversifying agriculture and fisheries to provide more options for disadvantaged rural populations and SME development will be slow. Foreign investment in PNG will slow down, particularly in gold, copper and other areas of mining.

New direction may follow Papua New Guinea election

2017 ◽  
Keyword(s):  
Service Delivery ◽  
Papua New Guinea ◽  
World Bank ◽  
Prime Minister ◽  
New Guinea ◽  
General Election ◽  
Election Campaign ◽  
Economic Management ◽  
Content Type ◽  
The Imf

Subject The 2017 general election in Papua New Guinea. Significance A two-week long general election in Papua New Guinea (PNG) ends on July 8. The election campaign has not gone as well as hoped for the incumbent government headed by Prime Minister Peter O’Neill, due to concerns about economic management, corruption and service delivery. Impacts There is some risk, though small, that an O’Neill win would prompt local unrest or calls for regional independence. Cancelling plans to host the APEC summit could become a symbol for moving spending priorities to education, health and infrastructure. The need for budgetary support from the IMF or World Bank might encourage more market-oriented policies.

Sign in / Sign up

Export Citation Format

Share Document