Papua New Guinea in resources boom

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View of Port Moresby, Papua New Guinea’s capital

The state of Papua New Guinea boasts significant growth opportunities in the natural resources sector with an annual export potential to exceed $25 billion by 2030, according to a report by Australia’s ANZ Bank.

It even would have the potential for export revenues to swell six-fold by 2030 to $38 billion a year, the bank added, but to develop the sector it would require around $130 billion of investment.

“Fundamentally, Papua New Guinea’s economic growth is now being driven by the urbanisation and industrialisation of Asia, and its prosperity is being underpinned by a super cycle in mining and energy, and increasingly in agriculture,” the report said.

The investment could create more than 100,000 new jobs in mining, energy and support services. For a country with nominal GDP of an estimated $15 billion in 2012 and with nearly 40 per cent of households living below the poverty line, the boost to national wealth could be considerable.

“We also believe agriculture has the potential to be the next sector in Papua New Gunia to experience significant Asia-led growth. There is enormous up-side in commodities like palm oil and coffee, an up-side that will also require significant investment which could in-turn create a new wave of additional jobs in rural communities,” the report said.

Experts say there is also a high growth potential for gas and condensate developments to produce liquified natural gas in Papua New Guinea, as well as to exploit copper and gold mines.

According to the International Monetary Fund, Papua New Guinea has achieved buoyant economic growth averaging over 6 per cent a year since 2007 on the back of strong commodity prices and macroeconomic stability, with growth estimated at 9 per cent in 2012.

 

 

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Reading Time: 1 minute

View of Port Moresby, Papua New Guinea’s capital

The state of Papua New Guinea boasts significant growth opportunities in the natural resources sector with an annual export potential to exceed $25 billion by 2030, according to a report by Australia’s ANZ Bank.

Reading Time: 1 minute

View of Port Moresby, Papua New Guinea’s capital

The state of Papua New Guinea boasts significant growth opportunities in the natural resources sector with an annual export potential to exceed $25 billion by 2030, according to a report by Australia’s ANZ Bank.

It even would have the potential for export revenues to swell six-fold by 2030 to $38 billion a year, the bank added, but to develop the sector it would require around $130 billion of investment.

“Fundamentally, Papua New Guinea’s economic growth is now being driven by the urbanisation and industrialisation of Asia, and its prosperity is being underpinned by a super cycle in mining and energy, and increasingly in agriculture,” the report said.

The investment could create more than 100,000 new jobs in mining, energy and support services. For a country with nominal GDP of an estimated $15 billion in 2012 and with nearly 40 per cent of households living below the poverty line, the boost to national wealth could be considerable.

“We also believe agriculture has the potential to be the next sector in Papua New Gunia to experience significant Asia-led growth. There is enormous up-side in commodities like palm oil and coffee, an up-side that will also require significant investment which could in-turn create a new wave of additional jobs in rural communities,” the report said.

Experts say there is also a high growth potential for gas and condensate developments to produce liquified natural gas in Papua New Guinea, as well as to exploit copper and gold mines.

According to the International Monetary Fund, Papua New Guinea has achieved buoyant economic growth averaging over 6 per cent a year since 2007 on the back of strong commodity prices and macroeconomic stability, with growth estimated at 9 per cent in 2012.

 

 

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