Open Access2019 Papua New Guinea economic survey
Author(s) -
Howes Stephen,
Fox Rohan,
Laveil Maholopa,
Nguyen Bao H.,
Sum Dek Joe
Publication year - 2019
Publication title -
asia and the pacific policy studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.529
H-Index - 14
ISSN - 2050-2680
DOI - 10.1002/app5.287
Subject(s) - arrears , economics , new guinea , government (linguistics) , revenue , debt , exchange rate , foreign exchange reserves , fiscal policy , corporate governance , government revenue , economic policy , finance , monetary economics , linguistics , ethnology , philosophy , history
Although official statistics show that an economic recovery is underway in Papua New Guinea, the country's new Prime Minister has stated that the economy is “bleeding and struggling.” Disappointing 2019 first‐half‐year revenue results and the reintensification of foreign exchange shortages suggest that last year's (nonresource) recovery, which was based on unsustainable fiscal expansion, has not endured; that this year's growth statistics may need to be further revised downwards; and that the government's growth and fiscal challenges are once again intensifying. The new government's governance reforms are promising; but they are no substitute for reviewing exchange rate and fiscal policy, perhaps by turning to the International Monetary Fund for advice and support to address the problems it has inherited, including in relation to arrears, guarantees, and state‐owned enterprise debt.