Papua New Guinea: Staff Report for the 2013 Article IV Consultation
IMF Staff Country Reports, December 3, 2013
Source details
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- Papua New Guinea: Staff Report for the 2013 Article IV Consultation
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Bibliographic details
- Published: December 3, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475556216.002
Executive summary and macroeconomic context
- Papua New Guinea has achieved strong economic growth over the past decade, benefiting from high commodity prices, mineral investment inflows, sound macroeconomic policies, and financial sector stability.
- The current account deficit is expected to narrow sharply in 2013 as imports and income outflows decline with the winding down of liquefied natural gas project construction.
- The Bank of Papua New Guinea has kept the policy interest rate unchanged since early 2013 given weakening nonmineral sector demand.
- The Bank of Papua New Guinea has issued central bank bills and raised cash reserve requirements to absorb excess liquidity in the banking system.
Key findings and projections
- Strong growth drivers identified:
- high commodity prices
- mineral investment inflows
- sound macroeconomic policies
- financial sector stability
- External sector projection:
- current account deficit expected to narrow sharply in 2013 due to declining imports and income outflows associated with the winding down of PNG LNG project construction
- Monetary policy and liquidity management:
- policy interest rate: unchanged since early 2013
- liquidity measures: issuance of central bank bills; increase in cash reserve requirements
Policy discussion and areas of focus
- Maintain macroeconomic stability amid resource-driven expansion.
- Manage liquidity and banking-sector excesses through market instruments (central bank bills) and regulatory tools (cash reserve requirements).
- Monitor nonmineral sector demand given observed weakening.
Subjects and keywords
- Subjects:
- Budget planning and preparation
- Economic and financial statistics
- Expenditure
- External debt
- Government finance statistics
- National accounts
- Public debt
- Public financial management (PFM)
- Keywords:
- Budget planning and preparation
- CR
- financing needs
- Global
- government
- Government finance statistics
- IMF TA recommendation
- ISCR
- LNG prices decline
- LNG revenue increase
- Pacific Islands
- PFTAC mission
- PNG government
- PNG LNG project
- Policy discussion
- resource revenue
International Monetary Fund. Papua New Guinea: Staff Report for the 2013 Article IV Consultation. December 3, 2013.