Prime Minister James Marape has said that an accounting firm that did a budget analysis projected economic growth to bounce back at 3.5 per cent next year. He said that this is due to the recovery by most sectors and improved global demands and consumption - in spite of the pandemic.
In a statement, Marape said, “This will see growth rise to an estimated 10.6 per cent in nominal terms (which is an increase from an initial 7.4 per cent forecast in the 2021 Budget strategy paper) totalling K90.3 billion and is expected to increase in 2022 to reach an estimated growth at K99.4 billion. The forecast increase of 10 per cent per annum in both 2021 and 2022 is the highest in PNG’s history and is larger than the growth from 2013 to 2015 when the PNG LNG Project commenced production. Economic growth is projected to grow at a steady annual growth rate of 3.1 per cent over the medium term, in line with an estimated 3.7 per cent growth in the non-mining sector.”
Marape said that this was an unparalleled prediction for PNG, and the numbers showed confidence for the programme and policy of the government. He added that with his “take back PNG” policy and the 2021 consolidation for growth budget, recovery and reconstruction are well underway.
“Through ‘take back PNG’ we have regained control of our own destiny,” he said. “PNG is now in charge of the levers of power. Papua New Guineans will note in particular that the Marape Government is now in charge of the country’s abundant natural resources, and is ensuring that the proceeds are now distributed fairly between the owners and the developers.”
