Economy
Economic overview:
Papua New Guinea is richly endowed with natural resources, but exploitation has been hampered by the rugged terrain and the high cost of developing an infrastructure. Agriculture provides a subsistence livelihood for the bulk of the population. Mining of numerous deposits, including copper and gold, accounts for about 60% of export earnings. Budgetary support from Australia and development aid under World Bank auspices have helped sustain the economy. In 1995, Port Moresby reached agreement with the IMF and World Bank on a structural adjustment program. PNG will receive loans totaling $350 million over the next two years from a variety of lenders including the Fund, the Bank, the Australian Government, and the Japanese Export-Import Bank. The loans will be provided only if Port Moresby implements significant reforms to liberalize trade and investment policies, reduce the public sector, and promote sustainable development of the forestry sector. At the start of 1996, Port Moresby is looking primarily to the exploitation of mineral and petroleum resources to drive economic development but new prospecting in Papua New Guinea has slumped as other mineral-rich countries have stepped up their competition for international investment. Output from current projects will probably begin to taper off in 1996, but no new large ventures are being developed to succeed them.
GDP:
purchasing power parity - $10.2 billion (1995 est.)
GDP real growth rate:
-3% (1995 est.)
GDP per capita:
$2,400 (1995 est.)
GDP composition by sector:
agriculture:
NA%
industry:
NA%
services:
NA%
Inflation rate (consumer prices):
15% (1995)
Labor force:
1.941 million
by occupation:
agriculture 64% (1993 est.)
Unemployment rate:
NA%
Budget:
revenues:
$1.86 billion
expenditures:
$1.9 billion, including capital expenditures of $NA (1995 est.)
Industries:
copra crushing, palm oil processing, plywood production, wood chip production; mining of gold, silver, and copper; construction, tourism
Industrial production growth rate:
NA%
Electricity:
capacity:
490,000 kW
production:
1.8 billion kWh
consumption per capita:
390 kWh (1993)
Agriculture:
coffee, cocoa, coconuts, palm kernels, tea, rubber, sweet potatoes, fruit, vegetables; poultry, pork
Exports:
$2.4 billion (f.o.b., 1995 est.)
commodities:
gold, copper ore, oil, logs, palm oil, coffee, cocoa, lobster
partners:
Australia, Japan, US, Singapore, New Zealand
Imports:
$1.4 billion (c.i.f., 1995 est.)
commodities:
machinery and transport equipment, manufactured goods, food, fuels, chemicals
partners:
Australia, Japan, UK, New Zealand, Netherlands
External debt:
$3.2 billion (1995)
Economic aid:
recipient:
ODA, $291 million (1993)
Currency:
1 kina (K) = 100 toea
Exchange rates:
kina (K) per US$1 - 0.7552 (October 1995), 0.9950 (1994), 1.0221 (1993), 1.0367 (1992), 1.0504 (1991); note - the government floated the kina on 10 October 1994
Fiscal year:
calendar year
