Papua New Guinea: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Papua New Guinea
IMF Staff Country Reports, November 18, 2015
Source details
- Canonical URL
- Papua New Guinea: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Papua New Guinea
Other formats
Bibliographic details
- Published: November 18, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513584683.002
Overview
- Papua New Guinea (PNG) is facing strong headwinds from lower global commodity prices.
- The commencement of liquefied natural gas (LNG) production has boosted overall GDP growth in 2014–15.
- Slow growth of the nonresource sector calls for a renewed policy focus on inclusive growth in the post-LNG construction period.
- Risks to the outlook are increasingly skewed to the downside.
Key findings and risks
- Fiscal consolidation necessitated by weaker-than-anticipated revenue performance will dampen nonresource growth over the short run.
- A weak global economy could further dampen external demand and commodity prices.
- The report highlights the contrast between strong LNG-related GDP gains and underperforming nonresource activity, underscoring vulnerability to commodity price swings.
Policy implications and recommendations
- Renew policy focus on inclusive growth during the post-LNG construction period to support nonresource sector expansion.
- Implement fiscal consolidation measures to address weaker-than-anticipated revenue performance, while managing short-run impacts on nonresource growth.
- Monitor external demand and commodity price developments closely given downside risks from the global economy.
Thematic coverage (subjects and keywords)
- Subjects: Commodity prices, Currency markets, Expenditure, External debt, Financial markets, Fiscal stance, Government finance statistics, Prices, Public debt
- Keywords: budget indicator, budget strategy paper, Commodity prices, CR, Currency markets, debt, deficit, Global, government of Papua New Guinea, ISCR, Pacific Islands, resource, staff assessment, staffs projection
Source: Papua New Guinea: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Papua New Guinea (November 18, 2015).