Economy - overview:
Papua New Guinea (PNG) is richly endowed with natural resources, but exploitation has been hampered by rugged terrain, land tenure issues, and the high cost of developing infrastructure. The economy has a small formal sector, focused mainly on the export of those natural resources, and an informal sector, employing the majority of the population. Agriculture provides a subsistence livelihood for 85% of the people. The global financial crisis had little impact because of continued foreign demand for PNG's commodities.
Mineral deposits, including copper, gold, and oil, account for nearly two-thirds of export earnings. Natural gas reserves amount to an estimated 155 billion cubic meters. Following construction of a $19 billion liquefied natural gas (LNG) project, PNG LNG, a consortium led by ExxonMobil, began exporting liquefied natural gas to Asian markets in May 2014. The project was delivered on time and only slightly above budget. The success of the project has encouraged other companies to look at similar LNG projects. French supermajor Total is hopes to begin construction on the Papua LNG project by 2020. Due to lower global commodity prices, resource revenues of all types have fallen dramatically. PNG’s government has recently been forced to adjust spending levels downward.
Numerous challenges still face the government of Peter O'NEILL, including providing physical security for foreign investors, regaining investor confidence, restoring integrity to state institutions, promoting economic efficiency by privatizing moribund state institutions, and maintaining good relations with Australia, its former colonial ruler. Other socio-cultural challenges could upend the economy including chronic law and order and land tenure issues. In August, 2017, PNG launched its first-ever national trade policy, PNG Trade Policy 2017-2032. The policy goal is to maximize trade and investment by increasing exports, to reduce imports, and to increase foreign direct investment (FDI).
GDP (purchasing power parity):
$30.84 billion (2017 est.)
$29.92 billion (2016 est.)
$29.22 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 132
GDP (official exchange rate):
$21.81 billion (2017 est.)
GDP - real growth rate:
3.1% (2017 est.)
2.4% (2016 est.)
9.2% (2015 est.)
country comparison to the world: 110
GDP - per capita (PPP):
$3,800 (2017 est.)
$3,800 (2016 est.)
$3,800 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 182
Gross national saving:
40.8% of GDP (2017 est.)
44.5% of GDP (2016 est.)
39.8% of GDP (2015 est.)
country comparison to the world: 8
GDP - composition, by end use:
household consumption: 45%
government consumption: 20.3%
investment in fixed capital: 10.4%
investment in inventories: -0.3%
exports of goods and services: 47.6%
imports of goods and services: -23% (2017 est.)
GDP - composition, by sector of origin:
agriculture: 22.1%
industry: 42.9%
services: 35% (2017 est.)
Agriculture - products:
coffee, cocoa, copra, palm kernels, tea, sugar, rubber, sweet potatoes, fruit, vegetables, vanilla; poultry, pork; shellfish
Industries:
copra crushing, palm oil processing, plywood production, wood chip production; mining (gold, silver, copper); crude oil and petroleum products; construction, tourism, livestock (pork, poultry, cattle), dairy products, spice products (turmeric, vanilla, ginger, cardamom, chili, pepper, citronella, and nutmeg), fisheries products
Industrial production growth rate:
3.3% (2017 est.)
country comparison to the world: 90
Labor force:
3.681 million (2017 est.)
country comparison to the world: 98
Labor force - by occupation:
agriculture: 85%
industry: NA%
services: NA% (2005 est.)
Unemployment rate:
2.5% (2017 est.)
2.5% (2016 est.)
country comparison to the world: 23
Population below poverty line:
37% (2002 est.)
Household income or consumption by percentage share:
lowest 10%: 1.7%
highest 10%: 40.5% (1996 est.)
Distribution of family income - Gini index:
50.9 (1996 est.)
country comparison to the world: 13
Budget:
revenues: $3.649 billion
expenditures: $4.763 billion (2017 est.)
Taxes and other revenues:
16.7% of GDP (2017 est.)
country comparison to the world: 179
Budget surplus (+) or deficit (-):
-5.1% of GDP (2017 est.)
country comparison to the world: 163
Public debt:
39.8% of GDP (2017 est.)
39% of GDP (2016 est.)
country comparison to the world: 137
Fiscal year:
calendar year
Inflation rate (consumer prices):
5.8% (2017 est.)
6.7% (2016 est.)
country comparison to the world: 179
Central bank discount rate:
14% (31 December 2010 est.)
6.92% (31 December 2009 est.)
country comparison to the world: 13
Commercial bank prime lending rate:
8.4% (31 December 2017 est.)
8.38% (31 December 2016 est.)
country comparison to the world: 102
Stock of narrow money:
$5.495 billion (31 December 2017 est.)
$5.05 billion (31 December 2016 est.)
country comparison to the world: 102
Stock of broad money:
$7.649 billion (31 December 2017 est.)
$7.061 billion (31 December 2016 est.)
country comparison to the world: 115
Stock of domestic credit:
$7.859 billion (31 December 2017 est.)
$7.223 billion (31 December 2016 est.)
country comparison to the world: 116
Market value of publicly traded shares:
$10.71 billion (31 December 2012 est.)
$8.999 billion (31 December 2011 est.)
$9.742 billion (31 December 2010 est.)
country comparison to the world: 74
Current account balance:
$4.053 billion (2017 est.)
$4.119 billion (2016 est.)
country comparison to the world: 28
Exports:
$9.526 billion (2017 est.)
$9.224 billion (2016 est.)
country comparison to the world: 93
Exports - commodities:
liquefied natural gas, oil, gold, copper ore, nickel, cobalt logs, palm oil, coffee, cocoa, copra, spice (turmeric, vanilla, ginger, and cardamom), crayfish, prawns, tuna, sea cucumber
Exports - partners:
Singapore 23.7%, Australia 22.9%, Japan 13.2%, China 11.9% (2016)
Imports:
$1.878 billion (2017 est.)
$2.267 billion (2016 est.)
country comparison to the world: 163
Imports - commodities:
machinery and transport equipment, manufactured goods, food, fuels, chemicals
Imports - partners:
Australia 36%, China 14.9%, Singapore 8.5%, Malaysia 7.5% (2016)
Reserves of foreign exchange and gold:
$1.8 billion (31 December 2017 est.)
$1.656 billion (31 December 2016 est.)
country comparison to the world: 121
Debt - external:
$17.09 billion (31 December 2017 est.)
$18.28 billion (31 December 2016 est.)
country comparison to the world: 97
Stock of direct foreign investment - at home:
$NA
Stock of direct foreign investment - abroad:
$NA
Exchange rates:
kina (PGK) per US dollar -
3.18 (2017 est.)
3.13 (2016 est.)
3.13 (2015 est.)
2.77 (2014 est.)
2.46 (2013 est.)