PNG Economy tipped to be fastest in Asia

PAPUA New Guinea will be Asia’s fastest growing economy in 2015, with a number of others, including Cambodia and Mongolia, growing faster than China.

According to the economist intelligence unit (EIU) special reports, Asia’s fastest-growing economy in 2015 will be a country that most investors will not have considered closely before.

The Economist reports that Papua New Guinea tops the regional rankings with a GDP growth rate of 14.8 percent, owing to a huge increase in its energy exports as a giant new ExxonMobil-led liquid natural gas (LNG) project comes on stream.

"Our prediction is that Papua New Guinea will be Asia’s fastest growing economy with a GDP growth rate of 14.8 percent, owing to a huge increase in its energy exports," the EIU reports.

"It will be closely followed in the double-digit club by Macau, at 10.6 percent, where a series of new casino developments on the Cotai Strip should boost exports of gambling services – provided that a recent drop in earnings, caused by a shift in mainland-Chinese policies affecting the territory’s gambling sector, proves to be temporary," the report said.

"Asia will once again be the engine of global GDP growth in 2015, but the picture within the region is beginning to show signs of shifting.

"In aggregate, we forecast that the region’s economy will expand by 4.5 percent, the same pace that we expect to see in 2014.

"However, as China’s economic growth rate continues to slow, other countries will begin to compete for the title of regional star performer. The last shall be the first, and PNG is coming up."

There are 35 countries that make up the Asian economic region, which PNG is part of, according to the Economist, with leading nations Australia and New Zealand also included.

Prime Minister Peter O’Neill said that it was very pleasing to see investors from Asia and Europe having confidence in PNG and its economy.

"It is pleasing to see that investors and leading economic commentators that they have confidence in our country and our economy," the Prime Minister said.

"Our country has a very bright future but challenges remain and one of which is political stability that continues to be undermined by a very few self-centred individuals."

PNG Today / Post Courier