According to the Asian Development Bank's 2021 forecast, the extractive and agricultural industries are projected to expand in 2021.
Mine and quarry production could rise in 2021 and 2022, according to the ADB's recently issued forecast for 2021, as favourable international metal prices spur production.
The Lihir and Ok Tedi mines, both multibillion-dollar ventures, are projected to increase gold production in 2021 after a tough year in 2020, while oil and gas production is expected to plateau. However, two new mineral and petroleum developments on the horizon, the Wafi-Golpu gold and copper mine and the Papua LNG project, both multibillion-dollar projects, have the potential to drive substantial development. In 2021, Papua LNG is scheduled to begin front-end engineering and design.
Meanwhile, the agriculture, forestry, and fisheries sectors are projected to rise by more than 3% in 2021, owing to low demand in 2020.
If conditions improve, transportation and storage, hotels and lodging, and renovation can all improve.
Capital spending is expected to increase by 16.9% in 2021 and another 9.7% in 2022, according to the National Budget for 2021.
The resulting stimulus would boost growth and local industries, but successful implementation would depend on development partners' support, according to the outlook.
