Economy of Papua New Guinea
The economy of Papua New Guinea (PNG) is largely underdeveloped with the vast majority of the population living below the poverty line. However, according to the Asian Development Bank its GDP is expected to grow 3.4% in 2022 and 4.6% in 2023. It is dominated by the agricultural, forestry, and fishing sector and the minerals and energy extraction sector. The agricultural, forestry, and fishing sector accounts for most of the labour force of PNG while the minerals and energy extraction sector, including gold, copper, oil and natural gas is responsible for most of the export earnings.
Port Moresby | |
| Currency | kina (PGK) |
|---|---|
| calendar year | |
Trade organisations | APEC and WTO |
Country group |
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| Statistics | |
| Population | 9,949,437 (2021) |
| GDP |
|
| GDP rank |
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GDP growth |
|
GDP per capita |
|
GDP per capita rank |
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GDP by sector |
|
| 4.4% (2020 est.) | |
Population below poverty line |
|
| 41.9 medium (2009, World Bank) | |
| |
Labour force |
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Labour force by occupation |
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| Unemployment | 2.5% (2017 est.) |
Main industries | Natural Gas extraction, palm oil processing, plywood production, mining (gold, silver, copper); wood chip production; crude oil and petroleum products; construction, tourism, livestock (pork, poultry, cattle), dairy products, spice products (turmeric, vanilla, ginger, cardamom, chili, pepper, citronella, and nutmeg), fisheries products |
| External | |
| Exports | $11 billion (2021 est.) |
Export goods | Natural gas, Gold, Copper ore, Crude petroleum, Nickel, Palm oil, Lumber, Fish, Coffee |
Main export partners | |
| Imports | $4.25 billion (2021 est.) |
Import goods | Refined Petroleum, Rice, Delivery trucks, Excavation Machinery, Motor vehicles; parts and accessories, foodstuffs |
Main import partners | |
FDI stock |
|
| $4.859 billion (2017 est.) | |
Gross external debt | $17.94 billion (31 December 2017 est.) |
| Public finances | |
Government debt | 36.9% of GDP (2017 est.) |
| −4.8% (of GDP) (2017 est.) | |
| Revenues | 3.638 billion (2017 est.) |
| Expenses | 4.591 billion (2017 est.) |
| Economic aid | no data |
Credit rating | Standard & Poor's: BB- (Domestic) B+ (Foreign) BB (T&C Assessment) Outlook: Stable Moody's: B2 Outlook: Stable |
| $1.735 billion (31 December 2017 est.) | |
PNG's GDP growth has been driven by the extraction industries and real GDP growth per capita has averaged 4% since mid-2000. The GDP Growth rate for PNG in 2021 was at 1.3%. The country has made significant progress investing proceeds from oil and gas in infrastructure building. As a result, its major cities like Port Moresby and Lae have received increased international investor attention, giving rise to an unprecedented building boom to exploit the opportunities presented by the country's rise as a regional economic leader in the South Pacific region. This is well supported by its strategic location as a gateway from the Pacific to Asia, as well as its comparatively huge landmass and demographic profile (almost 7 times that of the rest of the smaller Pacific Island nations)
The International Monetary Fund has reported that despite PNG's poverty, it is richly endowed with natural resources, but exploitation has been hampered by the rugged terrain and the high cost of developing infrastructure. Agriculture provides a subsistence livelihood for the bulk of the population. Mineral deposits, including oil, copper, and gold, account for 72% of export earnings.
Budgetary support from Australia and development aid under World Bank auspices continue to sustain the economy. Australia is PNG's largest aid donor, and will provide $479.2 million of aid in 2023. In June 2021 the World Bank approved a US$100 million (PGK 352 million equivalent) operation to support Papua New Guinea in its response to COVID-19, and to lay important foundations for a sustainable recovery.