Papua New Guinea: 2007 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion for Papua New Guinea

IMF Staff Country Reports, March 12, 2008

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Papua New Guinea: 2007 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 12, 2008
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781451831757.002

Overview

• Papua New Guinea’s economic performance has strengthened since the last Article IV Consultation.
• The country has significant underlying vulnerabilities.
• The economy is exposed to commodity price shocks, and mineral production is expected to decline over the medium to longer term.
• Macroeconomic vulnerabilities have intensified, in particular, the potential for higher unproductive fiscal spending to raise demand pressures and spur inflation.
• Prudent fiscal policies are welcomed.
• Implementation of the multi-donor technical assistance plan is encouraged.
• The authorities are encouraged to accelerate the structural reforms and improve infrastructure.

Key findings

• Strengthened economic performance since the previous Article IV Consultation.
• Exposure to commodity price shocks.
• Expected decline in mineral production over the medium to longer term.
• Intensified macroeconomic vulnerabilities tied to potential higher unproductive fiscal spending.
• Risk of increased demand pressures and spurred inflation if unproductive spending rises.

Policy recommendations and technical assistance

• Maintain prudent fiscal policies.
• Implement the multi-donor technical assistance plan.
• Accelerate structural reforms.
• Improve infrastructure.

Subject coverage and keywords

• Subject: Banking, Economic and financial statistics, Environment, Expenditure, External debt, Monetary statistics, Non-renewable resources, Public debt
• Keywords: central bank, CR, fiscal policy, Global, IBRD loan, IDA lending operation, IMF staff estimate, ISCR, loan, monetary policy, Monetary statistics, Non-renewable resources, pressures building, prudent fiscal policy, revenue inflow, sc

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• _cr0898 - Executive Summary
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  • _cr0898 - Executive Summary (PDF)