PNG Economy Shows Signs of Growth, CEOs Report Increased Optimism

Papua New Guinea's economic outlook for 2025 appears more promising compared to the previous year, based on a survey of chief executive officers (CEOs).

According to the findings of the PNG 100 CEO annual survey, business sentiment has improved despite ongoing challenges such as foreign exchange availability, security concerns, and unreliable power and water services. The survey, which has tracked business confidence trends since 2012, was conducted by Business Advantage International in collaboration with Westpac.

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The report highlighted that 40 per cent of CEOs indicated their 2024 profits exceeded expectations, while 30 per cent stated their profits aligned with forecasts. Additionally, 65 per cent of CEOs anticipate higher profits in 2025 compared to 2024, reflecting increased optimism from last year's survey, where 55 per cent expected profit growth.

Investment plans for 2025 also showed a positive outlook, with 67 per cent of CEOs planning to increase capital expenditure, a slight increase from 65 per cent recorded last year. However, recruitment expectations have declined, with 56 per cent of businesses planning to expand their workforce in 2025, down from 63 per cent in the previous year.

While business constraints such as foreign exchange shortages, security, and unreliable utilities remain concerns, their severity has lessened compared to 2024. The survey noted a decline in forex-related issues from 4.64 to 4.24 on the severity scale, while security and law and order concerns eased from 4.39 to 4.15. However, five challenges worsened, including logistics difficulties, lack of market intelligence, high rental costs, increased competition, and access to capital.

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