International Monetary Fund: Papua New Guinea's economic outlook optimistic

Papua New Guinea Prime Minister James Marape welcomes the recent report released by the International Monetary Fund (IMF), which shows that Papua New Guinea's economic outlook remains optimistic.

Economic growth forecast

According to the IMF report, Papua New Guinea's economic growth is expected to increase from 2.9% in 2023 to 4.6% in 2024. This growth is mainly due to the resumption of activity at the Porgera gold mine and favorable commodity prices.

The report also points out that inflation is expected to return to its historical average level, around 5%.

International Reserve and Central Bank Reform

In addition, Papua New Guinea's international reserves will reach $3.9 billion by the end of 2023, equivalent to 6.6 months of total imports, providing sufficient space for the continued implementation of central bank reforms.

Prime Minister Marappe said, "There is a lot of positive information in our economic outlook. Although we have not yet reached the ideal state and there is still a lot of work to be done, at least our fiscal consolidation has been recognized, and the IMF supports our plan, rather than putting pressure on us

Future project outlook

Prime Minister Malape added that projects such as Wafi Golpu, Papua LNG, Pasca LNG, P'nyang, and PNG LNG have not been considered in the economic recovery model after 2026. He emphasized that the government's policy is to increase the total economic value of these projects to over 55%.

Prime Minister Malape emphasized that the economic situation is not as severe as critics claim. He said, "Our Treasury Secretary Ian Ling Stuckey has clearly seen under our government the goal of reducing debt to zero by 2033 and achieving a strong economic target of over 200 billion Kina

He further called for, "We can discuss anything, but if our economy is not strong, we won't have the funds to get the job done. I urge our people to read professional reports written by professionals instead of listening to comments from unqualified people on social media

Analysis and Prospect

From another perspective, the IMF report and Prime Minister Malape's statement reflect Papua New Guinea's relative stability and potential growth momentum amidst global economic uncertainty. Despite the challenges, Papua New Guinea is expected to achieve sustainable economic development through sound economic policies and international cooperation.

In the future, the government needs to continue to focus on fiscal discipline, promote the implementation of key projects, and strengthen international cooperation to ensure the sustainability and inclusiveness of economic growth. Meanwhile, strengthening transparency and accountability will also help increase public trust in government economic policies.

Overall, the IMF report and the Prime Minister's positive statements have injected confidence into Papua New Guinea's future development and provided strong support for the government's economic policies.