The Asian Development Bank (ADB) recently released a positive forecast for Papua New Guinea's (PNG) economy, predicting a robust growth rate of 4.6% in 2025. This optimistic outlook hinges on an anticipated rebound in the mining sector, a key driver of the country's economic activity. ADB Country Director Said Zaidansyah acknowledged a slowdown in PNG's economic growth last year, attributed to a decline in resource sector production, which resulted in a 2.0% growth rate. However, with the resumption of operations at the Porgera gold mine on the horizon, the economy is expected to pick up pace, with a projected growth of 3.3% in 2024. "The medium-term outlook for PNG's economy remains encouraging," Zaidansyah emphasized, highlighting the anticipated expansion to a 4.6% growth rate in 2025. The Asian Development Outlook (ADO), ADB's flagship economic publication launched in Port Moresby, provides in-depth analyses of development challenges across developing countries in the Asia-Pacific region. The report includes tailored growth projections for individual countries. While acknowledging ongoing hurdles such as foreign exchange limitations and frequent power outages that hinder economic progress, Zaidansyah reiterated the ADB's commitment to supporting the PNG government. This commitment is reflected in a US$1.38 billion (approximately K5.2 billion) development assistance portfolio. As a significant development partner for PNG, the ADB is set to launch a robust pipeline of 11 projects to deliver sustained support. This initiative aligns with the ongoing International Monetary Fund (IMF)-led program in PNG. "The government's participation in the IMF's extended credit facility program necessitates certain requirements," Zaidansyah explained, assuring that ADB's support would be synchronized with the program's objectives. ADB's focus areas for PNG include infrastructure development, capacity building, and economic reforms. These initiatives aim to strengthen PNG's resilience and pave the way for sustainable economic growth in the coming years. The ADB's positive outlook offers a beacon of hope for PNG's economic trajectory, underlining the significance of strategic partnerships and coordinated efforts in fostering development and prosperity. Also read Comments are closed.
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