Papua New Guinea Economic Update, January 2020 : Facing Economic Headwinds
Papua New Guinea’s economy continues to face economic headwinds resulting from global and domestic economic uncertainties. PNG’s real GDP, despite rebounding to 5.6 percent in 2019, is expected to fall and hover at around 3 percent on average betwe...
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/584121580926099153/Papua-New-Guinea-Economic-Update-Facing-Economic-Headwinds http://hdl.handle.net/10986/33288 |
| Summary: | Papua New Guinea’s economy continues to
face economic headwinds resulting from global and domestic
economic uncertainties. PNG’s real GDP, despite rebounding
to 5.6 percent in 2019, is expected to fall and hover at
around 3 percent on average between 2020¬ and 2022, posing
many negative risks, including exposure to unexpected
external shocks or potential domestic political and economic
turbulence. Projected GDP growth rates are lower than our
previous forecasts, mainly due to delays in finalizing
agreements and launching implementation of large new
resource projects. The other major factor that impacted the
downgrade in the growth outlook include heightened global
uncertainty due to (i) a partial nature of the recent trade
deal between the United States and China and (ii) a fresh
emergence of new risks to Chinese and global growth,
including a novel coronavirus. The report also provides an
in-depth examination of the relationship between
inclusiveness of growth and human capital (the health,
knowledge, skills and resilience people accumulate). The
report evaluates the implications of recent trends and
policy reforms alongside the government’s stated development
objectives, emphasizing that increased investment in human
capital will be a critical prerequisite to achieving quality
and inclusive growth in PNG. |
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