| 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. Mineral deposits, including copper, gold, and oil, account for nearly two-thirds of export earnings. Natural gas reserves amount to an estimated 227 billion cubic meters. A consortium led by a major American oil company is constructing a liquefied natural gas (LNG) production facility that could begin exporting in 2014. As the largest investment project in the country's history, it has the potential to double GDP in the near-term and triple Papua New Guinea's export revenue. An American-owned firm also opened PNG's first oil refinery in 2004 and is building a second LNG production facility. The government faces the challenge of ensuring transparency and accountability for revenues flowing from this and other large LNG projects. In 2011 and 2012, the National Parliament passed legislation that created an offshore Sovereign Wealth Fund (SWF) to manage government surpluses from mineral, oil, and natural gas projects. In recent years, the government has opened up markets in telecommunications and air transport, making both more affordable to the people. 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. The global financial crisis had little impact because of continued foreign demand for PNG's commodities. |
| GDP (purchasing power parity) | $18.45 billion (2012 est.)
$17.14 billion (2011 est.)
$15.74 billion (2010 est.)
note: data are in 2012 US dollars |
| GDP (official exchange rate) | $15.39 billion (2012 est.) |
| GDP - real growth rate | 7.7% (2012 est.)
8.9% (2011 est.)
7.6% (2010 est.) |
| GDP - per capita (PPP) | $2,700 (2012 est.)
$2,600 (2011 est.)
$2,400 (2010 est.)
note: data are in 2012 US dollars |
| GDP - composition by sector | agriculture: 27.9%
industry: 38.5%
services: 33.6% (2012 est.) |
| Population below poverty line | 37% (2002 est.) |
| Labor force | 3.986 million (2012 est.) |
| Labor force - by occupation | agriculture: 85%
industry: (2005 est.)
services: NA% (2005 est.) |
| Unemployment rate | 1.9% (2008 est.)
1.8% (2004) |
| Household income or consumption by percentage share | lowest 10%: 1.7%
highest 10%: 40.5% (1996) |
| Distribution of family income - Gini index | 50.9 (1996) |
| Investment (gross fixed) | 20.6% of GDP (2012 est.) |
| Budget | revenues: $4.962 billion
expenditures: $4.942 billion (2012 est.) |
| Taxes and other revenues | 32.2% of GDP (2012 est.) |
| Budget surplus (+) or deficit (-) | 0.1% of GDP (2012 est.) |
| Public debt | 23.3% of GDP (2012 est.)
22.9% of GDP (2011 est.) |
| Inflation rate (consumer prices) | 6.2% (2012 est.)
8.4% (2011 est.) |
| Central bank discount rate | 14% (31 December 2010 est.)
6.92% (31 December 2009 est.) |
| Commercial bank prime lending rate | 11.3% (31 December 2012 est.)
10.81% (31 December 2011 est.) |
| Stock of money | $2.005 billion (31 December 2008)
$1.685 billion (31 December 2007) |
| Stock of narrow money | $5.685 billion (31 December 2012 est.)
$4.488 billion (31 December 2011 est.) |
| Stock of broad money | $8.624 billion (31 December 2012 est.)
$7.134 billion (31 December 2011 est.) |
| Stock of quasi money | $1.726 billion (31 December 2008)
$1.482 billion (31 December 2007) |
| Stock of domestic credit | $3.585 billion (31 December 2012 est.)
$3.093 billion (31 December 2011 est.) |
| Market value of publicly traded shares | $8.999 billion (31 December 2011)
$9.742 billion (31 December 2010)
$12.21 billion (31 December 2009) |
| 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, and copper); crude oil production, petroleum refining; construction, tourism |
| Industrial production growth rate | 10% (2010 est.) |
| Current Account Balance | -$4.381 billion (2012 est.)
-$48.5 million (2011 est.) |
| Exports | $7.362 billion (2012 est.)
$6.791 billion (2011 est.) |
| Exports - commodities | oil, gold, copper ore, logs, palm oil, coffee, cocoa, crayfish, prawns |
| Exports - partners | Australia 31.5%, Japan 7%, China 6.2% (2011) |
| Imports | $5.269 billion (2012 est.)
$4.07 billion (2011 est.) |
| Imports - commodities | machinery and transport equipment, manufactured goods, food, fuels, chemicals |
| Imports - partners | Australia 36.9%, Singapore 14.1%, Malaysia 9.1%, China 7%, Japan 5%, Indonesia 4.7%, US 4.7% (2011) |
| Reserves of foreign exchange and gold | $5.207 billion (31 December 2012 est.)
$4.323 billion (31 December 2011 est.) |
| Debt - external | $4.86 billion (31 December 2012 est.)
$5.144 billion (31 December 2011 est.) |
| Stock of direct foreign investment - at home | $NA |
| Stock of direct foreign investment - abroad | $NA |
| Exchange rates | kina (PGK) per US dollar -
2.078 (2012 est.)
2.371 (2011 est.)
2.7193 (2010 est.)
2.7551 (2009)
2.6956 (2008) |
| Fiscal year | calendar year |
