Group praises PNG economy

THE PNG economy is expected to be the fastest growing in the world this year, according to a Oxford Business Group report. 

In its PNG 2015 report, the group said this would come about with the country’s growth predictions ranging between 6.9 per cent and 21 per cent. 

The growth is the result of LNG production plus exports.

Growth estimates in 2015 have varied widely, with the decline resulting from lower commodity prices. 

The group said despite fluctuations in the prices, Papua New Guinea was likely to avoid the major crisis predicted by some observers and was expected to enjoy relatively high rate of growth and some stability. 

Economist and general manager of BSP Capital Richard Borysiewicz who was present during the launching of the report on Wednesday, said current growth numbers for Papua Newa Guinea were sustainable.

“We have actually gone full circle,” Borysiewicz said

“We’ve actually reached a new norm where you’ve got more reasonable, more sustainable growth numbers which are healthy.”

The report said cash flow from the project would help in the repayment of debts and other obligations, and funds would begin to build and counter losses.