The country has a lot of upside potential for economic growth and employment with the slate of resource projects and scale of government investment in the near term. However maintaining investor confidence is key to maximising economic benefit from growth.
BSP Financial Group CEO, Mark Robinson said both the IMF and Department of Treasury anticipate strong growth in 2024, with the PNG economy forecast to grow at 5.0% and 5.3%, respectively. However, despite this positive outlook, the events of ‘Black Wednesday’ paint a dark picture of PNG’s current socio-economic environment.
He further adds that, damages of this magnitude in an economy like PNG can see a loss of jobs and create a supply shock effect and accelerate inflation. Meaning an increased cost of living. In addition, the loss of businesses also translates to lower revenue for other businesses in the value chain network of these damaged businesses.
“On a positive note, Porgera’s resumed operations in Q1 2024, will be crucial in driving positive sentiments among investor’s and fuelling both PNG’s resource sector activity and revenue prospects,” Mr. Robinson added.
The near term is also marked with a slate of resource projects, with Papua LNG’s FID expected to be signed in 2024 and Wafi-Golpu potentially to follow suit. Timely commencement will greatly boost investor confidence and activate an investment super-cycle, presenting significant employment opportunities and activity of our business customers.