Decline in Business Confidence Revealed by Bank of Papua New Guinea Survey
A recent survey conducted by the Bank of Papua New Guinea (BPNG) has unveiled a concerning trend of decreasing business confidence within the country.
Bank of PNG Governor Elizabeth Genia disclosed this revelation while presenting the March 2024 BPNG Monetary Statement in Port Moresby.
"The Bank of PNG business sentiment survey conducted in January 2024 indicates a decline in business confidence, which is expected to persist in the coming months, attributed to the lingering effects of the unrest in January," stated Governor Genia.
The Central Bank has also projected a five percent increase in the Consumer Price Index (CPI) for the current year, coupled with a rise in unemployment rates, which is anticipated to further impact business revenues.
"Anticipated revenue for businesses will remain under pressure as consumers may not have the same disposable income as before to make purchases, and the employment level in the non-mineral private sector is expected to decline," Governor Genia elaborated.
Despite these challenges, the head of the country’s central bank remains optimistic as the first quarter of 2024 draws to a close.
"For the year 2024, the Bank of PNG is forecasting a rebound in real GDP (Gross Domestic Product) growth by 3 percent, primarily driven by the mineral sector, supported by the resumption of production at the Porgera Mine," Ms. Genia affirmed.
The revelation of declining business confidence underscores the challenges facing Papua New Guinea's economy, even as efforts are being made to stimulate growth and stability in various sectors.
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