Papua New Guinea: 2006 Article IV Consultation—Staff Report; and Public Information Notice on the Executive Board Discussion for Papua New Guinea
IMF Staff Country Reports, March 21, 2007
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- Papua New Guinea: 2006 Article IV Consultation—Staff Report; and Public Information Notice on the Executive Board Discussion for Papua New Guinea
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Bibliographic details
- Published: March 21, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451831726.002
Overview and Key Findings
- Papua New Guinea is enjoying its fourth year of recovery and macroeconomic stability.
- Sound macroeconomic policies over the past several years have:
- reduced fiscal vulnerabilities,
- lowered inflation,
- spurred business confidence,
- boosted growth.
- High prices for key export commodities have strengthened the fiscal and external positions.
- Progress toward achieving the country’s Medium-Term Development Strategy objectives or Millennium Development Goals has been limited.
- Recent developments and the near-term outlook remain favorable.
Near-term Outlook and Economic Drivers
- Recovery and macroeconomic stability are continuing into the near term.
- Commodity price strength is a principal factor supporting fiscal and external positions.
Major Challenges and Policy Implications
- Despite macroeconomic improvements, significant challenges remain in translating economic gains into development outcomes:
- Limited progress on Medium-Term Development Strategy objectives.
- Limited progress on Millennium Development Goals.
- Implicit policy emphasis on maintaining sound macroeconomic management to sustain stability and leverage commodity-driven gains for development objectives.
Subject Areas and Keywords (as listed)
- Subject: Budget planning and preparation, Environment, Expenditure, External debt, Non-renewable resources, Public debt, Public financial management (PFM)
- Keywords: Asia and Pacific, broad money, Budget planning and preparation, central bank, country authorities, CR, current account, debt service, exchange rate, government spending, ISCR, mineral wealth, Non-renewable resources, private sector, spending outcome, U.S. dollar