Papua New Guinea an Emerging Economy in the South Pacific: Challenges and Prospects
HANDBOOK OF BUSINESS PRACTICES AND GROWTH IN EMERGING MARKETS, Satyendra Singh, ed., World Scientific Publishing Company PTE LTD, Forthcoming
Posted: 4 Feb 2009
Date Written: February 3, 2009
Papua New Guinea (PNG) is the largest and most populated of all the Pacific Island countries. It is a developing nation with 15 percent of the population engaged in market economy and the remaining 85 per cent of people engaged in the farming. A prudent macroeconomic policy and favourable terms of trade trends has helped Papua New Guinea maintain macroeconomic stability, strong external balances and solid economic growth over the past five years. The country, however, faces difficult development challenges, including weaknesses in governance, infrastructure, human development, the business climate, public financial management, security, and service delivery. Despite of the challenges the PNG economy has been performing better for the last few years. This paper examines the challenges in the economy and explores the prospects that exist for the future development of countries economy. The paper also delves the recent economic trends of PNG.
Keywords: Papua New Guinea, South Pacific, economy, mining and petroleum industries, budget management
JEL Classification: D24, E2, E31, E42
Suggested Citation: Suggested Citation