Papua New Guinea: Staff Report for the 2014 Article IV Consultation
IMF Staff Country Reports, December 2, 2014
Source details
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- Papua New Guinea: Staff Report for the 2014 Article IV Consultation
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Bibliographic details
- Published: December 2, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498355711.002
Executive summary and transition context
- The report highlights that Papua New Guinea’s economy is experiencing an important transition as new liquefied natural gas (LNG) production and exports commence.
- With LNG production and exports now starting, resource sector growth is projected to surge in 2015, but spillovers to the rest of the economy may be more limited.
- The ongoing economic transition calls for adjustment of macroeconomic policies to safeguard macrofinancial stability.
Inflation and commodity outlook
- Inflation has moderated from its peaks during the construction boom.
- Inflation is likely to remain reasonably low given the global outlook for commodity prices.
Policy implications and recommendations (high level)
- Adjust macroeconomic policies to safeguard macrofinancial stability in light of the LNG-driven transition and limited spillovers to the nonresource economy.
Subjects and keywords (as listed)
- Subjects: Economic and financial statistics, Expenditure, External debt, Foreign exchange, Government finance statistics, Public debt
- Keywords: budget, CR, current account, deficit, deficit target, Global, Government finance statistics, government of Papua New Guinea, ISCR, LNG project, Pacific Islands, project construction, supplementary budget