Economic Profile

Papua New Guinea continues to experience strong economic performance giving confidence to businesses in the country.

Gross Domestic Product – GDP

Papua New Guinea’s GDP Growth is expected at 3.4% in 2022.

PNG like any other countries has gone into an economic recession because of the COVID-19 pandemic in 2020 which affected the world commodity prices especially for oil, gas and minerals which were the key engines of growth. However, other sectors thrived in 2021 as the country experienced a more stable year. The GDP Growth rate for PNG in 2021 was at 1.3%.

Economy

Papua New Guinea has a dual economy comprising a formal, corporate-based sector and a large informal sector where subsistence farming accounts for the bulk of economic activity.

Formal Sector

The formal sector provides a narrow employment base, consisting of workers engaged in mineral production, a relatively small manufacturing sector, public sector employees and service industries including finance, construction, transportation and utilities. The majority of the population is engaged in the informal sector.

Economic Sectors

The major economic sectors in Papua New Guinea are: Agriculture and Livestock, Forestry, Mining and Petroleum, Tourism and Hospitality, Fisheries and Marine resources, Manufacturing, Retailing and Wholesaling, Building and Construction, Transport and Telecommunications, and Finance and Business Trade.

Exports

PNG’s major exports are gold, silver, copper, crude oil, logs and timber, coffee, palm oil, cocoa and copra.

Imports

Papua New Guinea’s main imports are sourced from Australia, Japan, the United States of America, Singapore, New Zealand, the United Kingdom, China and Hong Kong. The main destinations of PNG exports are Australia, Japan, South Korea, China, Germany, the United States of America, the United Kingdom and Singapore.