{
  "title": "Papua New Guinea: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Papua New Guinea",
  "publication": "IMF Staff Country Reports, December 29, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2017/12/29/papua-new-guinea-2017-article-iv-consultation-press-release-staff-report-and-statement-by-45532",
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  "summary": "This 2017 Article IV Consultation highlights that Papua New Guinea’s economic activity has remained subdued in 2017. Slow growth, generous tax treatment of the Liquefied Natural Gas project, the drought and weak tax administration have all contributed to declining tax revenues and a substantial fisc",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- Economic activity in Papua New Guinea remained subdued in 2017.\n- Slow growth, generous tax treatment of the Liquefied Natural Gas project, the drought, and weak tax administration contributed to declining tax revenues.\n- These factors led to a substantial fiscal deficit and an increasing debt-to-GDP ratio.\n- Inflation was boosted to over 6 percent by drought effects, but is beginning to ease.\n- Near-term risks to the outlook are tilted to the downside.\n- Over the medium term, risks are more balanced owing to the upside potential of new resource sector projects and, possibly, a pickup in commodity export prices."
    },
    {
      "heading": "Causes of fiscal deterioration and revenue weakness",
      "content": "- Generous tax treatment of the Liquefied Natural Gas project.\n- Drought-related economic disruptions.\n- Weak tax administration.\n- Slow overall economic growth."
    },
    {
      "heading": "Inflation and external conditions",
      "content": "- Inflation: boosted to over 6 percent by drought effects; currently beginning to ease.\n- External and commodity factors: medium-term upside potential from new resource sector projects and potential pickup in commodity export prices."
    },
    {
      "heading": "Risks and outlook",
      "content": "- Near-term risks: tilted to the downside.\n- Medium-term risks: more balanced because of potential new resource projects and possible commodity price improvements.\n\n---\n\n Content in this bundle\n\n- Country Report\n  - Country Report (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Country Report (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: December 29, 2017",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781484335918.002",
    "Economic activity in Papua New Guinea remained subdued in 2017.",
    "Slow growth, generous tax treatment of the Liquefied Natural Gas project, the drought, and weak tax administration contributed to declining tax revenues.",
    "These factors led to a substantial fiscal deficit and an increasing debt-to-GDP ratio.",
    "Inflation was boosted to over 6 percent by drought effects, but is beginning to ease.",
    "Near-term risks to the outlook are tilted to the downside.",
    "Over the medium term, risks are more balanced owing to the upside potential of new resource sector projects and, possibly, a pickup in commodity export prices.",
    "Generous tax treatment of the Liquefied Natural Gas project.",
    "Drought-related economic disruptions.",
    "Weak tax administration.",
    "Slow overall economic growth.",
    "Inflation: boosted to over 6 percent by drought effects; currently beginning to ease.",
    "External and commodity factors: medium-term upside potential from new resource sector projects and potential pickup in commodity export prices.",
    "Near-term risks: tilted to the downside.",
    "Medium-term risks: more balanced because of potential new resource projects and possible commodity price improvements.",
    "**Country Report**"
  ],
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