The Asian Development Bank (ADB) is predicting an economic turn around in Papua New Guinea.
The Asian Development Bank (ADB) is an Asia regional development organization dedicated to reducing poverty in Asia and the Pacific. Photo: AFP/ Jay Directo
PNG economy looking brighter - ADB
In its latest outlook for the country, the ADB said PNG's economy was set to grow by 3.7 percent this year.
The growth is set to come from a full year of production of key mineral, petroleum, and gas exports, as well as improved access to foreign exchange.
The medium-term outlook for PNG's economy remained positive, with growth forecast at 3.1 percent next year, the ADB said.
ADB country director in PNG David Hill said structural reform and market-focused policies were critical for attracting foreign capital and helping build an economy that was more diversified and shock resilient.
The squeeze on foreign exchange, which has frustrated importers, has eased in the past year, the bank said.
Next year's expected expansion of the PNG LNG project should attract foreign investment in excess of $US10 billion, it said.
Construction is also set to start in 2020 on the $US2.8 billion Wafi-Golpu gold and copper mine project, while a submarine cable link from Port Moresby to Sydney, due to be completed this year, will also boost growth.