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PNG Economy stabilises after recent government announcements

Thursday, July 15, 2021

Economic growth is projected to accelerate to 4.2% in 2022 as PNG’s economy continues to recover from a pandemic-induced recession in 2020 and with 2021 economic growth expected at 3.5%, although recent surge in Covid-19 cases poses a threat, announced BSP Financial Group Limited (BSP) in its Pacific Economic and Market Insight Quarter 2 of 2021 Report.

The report also stated that the reopening of the Porgera Gold Mine now sets the path for all stakeholders’ partnership for the next 10 years. Encouragingly, copper and oil, two of PNG’s major exports are at multi year highs.

“With the recent government announcements, BSP is looking to further increase its services as PNG’s economy begins to stabilise,” said BSP Group CEO Robin Fleming.

“BSP is always looking at opportunities to increase and improve its service levels and customers convenience. We are expanding our Branch networks – staring with the opening of Koroba Branch in Hela Province last week and later this month, we’re opening a larger premise of our Namatanai Sub-Branch in New Ireland,” added Mr Fleming.

“We are currently in the process of finalising the construction of a new branch in Eriku, Lae, Morobe Province, which is expected to be completed later this year. We are also looking into opening a second branch in Mt Hagen, recognising its position as being the central point for the Highlands region. Discussions are in progress with potential landlords,” explained Mr Fleming.

Apart from the new branches, the BSP Chief also noted that BSP has 200 registered agents in all 22 provinces in PNG which provide basic banking services to the people.

“Our agency network is an essential part of BSP’s commitment to the country and to the provision of banking services to the more remote communities in the country. This also represents the group’s commitment to financial inclusion,” reiterated Fleming.

In this report, Mr Fleming also said that development partners continue to assist with budgetary support and the delivery of Covid-19 vaccinations in the respective vaccination sites around PNG.