October 1, 2013


The Bank of Papua New Guinea has urged the country NOT to panic over it's current gross domestic product, or G-D-P growth rate.

It projects that the G-D-P will grow by five percent by the end of 2013.

This is one-point-one percent lower than the Government's latest forecast of six-point-one percent, down from an estimate of eight percent in 2012.

This is due to the winding down of the construction phase of the P-N-G L-N-G project and lower crude oil production, reflecting the decline in reserves.

A daily paper had reported that this would have a dampening effect on the government's effort to make P-N-G an ideal investment destination with high growth rates.

However, the Central Bank says, the five percent growth rate is still good and healthy, and there's no need for alarm.

It says since the global financial crisis, P-N-G and Australia have seen a conservative growth, and the five percent growth is still healthy.

The International Monetary Fund has also projected a growth of between five and six percent for P-N-G's economy.

The Central Bank says P-N-G's economic growth is expected to rebound in 2014, and remain strong over the medium term.

It expects the real GDP growth to be higher than 5.5 percent forecasted by government in 2014, following the commencement of the production of the LNG.

All sectors of the economy are expected to grow.

Author: verified_user