Papua New Guinea

Growth expected to moderate in 2009 as commodity prices remain low

Booming commodity prices underpinned growth in the economy and in government revenue in recent years. GDP growth accelerated a little in 2008, and inflation shot up. The plunge in global commodity prices is expected to pull down growth this year, and inflation is likely to moderate. The Government can draw on savings made in the boom years to support its spending, but also needs to put a higher priority on infrastructure investment and extending basic services. Read the full report.