Highlights from The Report: Papua New Guinea 2020

Описание: Highlights from The Report: Papua New Guinea 2020

Oxford Business Group has now launched The Report: Papua New Guinea 2020. This ninth edition of our country-specific analysis contains in-depth analysis on the key issues and trends shaping the economy. The publication is being welcomed at a time of significant global uncertainty amidst the Covid-19 pandemic.

Following the first confirmed Covid-19 case in PNG on March 20, the country closed its borders to international travellers and immediately implemented a lockdown to limit the movement of people. Restrictions were eased after two weeks, enabling a phased reopening of the economy, and these measures initially seemed to have effectively controlled the spread of the coronavirus. Cases then began to rise, and upon the country’s first Covid-19-related fatality on July 27, Prime Minister James Marape imposed a 14-day lockdown on the capital, Port Moresby. Safety measures included the shuttering of non-essential businesses; school closures; and a ban on domestic flights to/from the capital. A curfew was also introduced from 10pm to 5am and public transport was halted, with the exception of taxi services. Those fulfilling essential duties were mandated to wear a facemask in public. It remains to be seen how far this second round of restrictions will mitigate the spread of the coronavirus – as well as how long these measures will remain in place and how restrictions will impact the business community in the longer term.

The pandemic arrived on the back of improved performance for PNG’s economy, which enjoyed a 5.6% expansion in real GDP in 2019. This growth was driven largely by improved extractives performance, after PNG recovered from the effects of a devastating earthquake that halted production at key resource projects in 2018. The non-resource segment faced an unfavourable international trade environment during 2019 against the backdrop of US-China trade disputes.

This latest report from OBG provides an in-depth analysis of the role that gold exports could play in helping PNG ride out the commodities slump triggered by Covid-19. It also highlights further opportunities across PNG’s extractive industries, while also tracking negotiations on the two planned liquefied natural gas projects that could potentially double PNG’s liquefied natural gas output. Elsewhere, the report charts the latest progress in PNG’s $8bn Medium-Term Development Plan 2018-22, which is spearheading the national drive to improve transport infrastructure. Key developments explored include a $206.5m contract inked between local and Japanese partners in December 2019, which paves the way for the expansion of Lae Nadzab Airport into an international facility. Other major projects examined include the Coral Sea Cable System to Sydney, which became operational in February 2020, and should boost access to digital services. Elsewhere, OBG considers the role that restructuring state-owned ICT assets could play as PNG aims to reduce the cost of online services. The report also details PNG’s plans to develop special economic zones as part of efforts to expand the country’s manufacturing industry.

While nurturing non-extractives segments is a key commitment of the administration, it remains to be seen how far the global Covid-19 pandemic will lead to a reappraisal of the government’s long-term strategy, or to a reshuffling of the priorities of resource companies. Nevertheless, in spite of Covid-19-related constraints, agriculture continues to offer potential to emerge as a new growth engine for the economy – particularly if infrastructure gaps can be addressed. This leaves the door open for those players who can help address PNG’s infrastructure shortfalls and unlock new opportunities for investment and wealth generation across the country.

Read The Report: Papua New Guinea 2020 for an in-depth analysis of these crucial topics from our on-the-ground and remote experts, as well as incisive insights from key private and public sector players.

Click here to read The Report: Papua New Guinea 2020: http://ow.ly/I0TD30r4Vtk