Uneasy outlook on PNG economy

BUSINESS IN Papua New Guinea has expressed concern over the country’s economic outlook.
Uneasy outlook on PNG economy Uneasy outlook on PNG economy Uneasy outlook on PNG economy Uneasy outlook on PNG economy Uneasy outlook on PNG economy

Reginald Monagi

Staff Reporter

Kina Asset Management believes the outlook for the markets remains uncertain, with its chairman Sir Rabbie Namaliu highlighting this in the company's 2021 annual report, The National newspaper reports.
"In my last report to shareholders, I noted that the company was cautiously optimistic about the future. In the US and parts of Europe, accommodative monetary and fiscal policies, high Covid-19 vaccination rates and the relaxation of restrictions on economic activity have all combined to facilitate a strong economic recovery," Namaliu said.
"Inflation outcomes have been much higher, more persistent, and more broadly based, and central banks globally have begun to review monetary policy settings.
The conflict in Eastern Europe - in addition to the terrible human cost - had added to this uncertainty.
Sharing similar views was Port Moresby Chamber of Commerce and Industry president Rio Fiocco, who said there was no upside to the current business climate.
Fiocco said it was expected to remain the same for the next two years as businesses waited for a final investment decision on the Papua LNG project to move into its construction phase.
"It is likely to remain the same as it is now for at least the next 12 to 18 months. Businesses don't see any real upside until the final investment decision is made on the Papua LNG project and start construction phase which is likely to be around 2024."
Fiocco added that in relation to developments in Port Moresby, any new projects were important as it created new employment opportunities in the construction phase and later on as well.
Nambawan Super chairman Reginald Monagi said there was an indication that the country's economy was ready to recover after challenges brought on by the Covid-19.



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