DOCSLIB.ORG

Papua New Guinea at a Glance: 2001-02

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Papua New Guinea at a Glance: 2001-02 COUNTRY REPORT Papua New Guinea At a glance: 2001-02 OVERVIEW The government has been making progress in implementing its economic reform programme. However, economic activity in all sectors has been fairly subdued in 2000. The EIU estimates real GDP growth of 2.9% in 2000 and forecasts 3.8% in 2001 and 7.0% in 2002. Economic activity will pick up in the next few years with the development of major minerals and gas projects. Growth will also be driven by stronger domestic demand as interest rates fall. Inflation remained high in 2000 but should fall in 2001 and 2002 as price stability becomes the primary focus of the Bank of Papua New Guinea (the central bank). The current account will remain in surplus in 2001 but will fall into deficit as imports of capital equipment for these projects rise significantly in 2002. The kina is steadily depreciating but should remain in an acceptably narrow trading range in 2001 and 2002 as capital inflows counterbalance the increasing demand for imports. Key changes from last month Political outlook • Sir Mekere Morauta has reshuffled his cabinet again in an attempt to rid the government of disloyal members. The former prime minister, Sir Michael Somare, was the latest casualty. He was dismissed for not voting with the government on the integrity bill. The bill was eventually passed by a vote of 84-0. Economic policy outlook • Changes to the tax regime for gas, oil and mining, announced in the 2001 budget should encourage new exploration and development in these areas. Economic forecast • We have revised downwards our estimate for GDP growth in 2000 from 4.1% to 2.9% following a decline in economic activity in all sectors. We still expect an improvement in 2001 and 2002, however this will be less impressive than our previous forecast, at 3.8% and 7.0% respectively. January 2001 The Economist Intelligence Unit 15 Regent St, London SW1Y 4LR United Kingdom The Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders. For over 50 years it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide. The EIU delivers its information in four ways: through our digital portfolio, where our latest analysis is updated daily; through printed subscription products ranging from newsletters to annual reference works; through research reports; and by organising conferences and roundtables. The firm is a member of The Economist Group. London New York Hong Kong The Economist Intelligence Unit The Economist Intelligence Unit The Economist Intelligence Unit 15 Regent St The Economist Building 25/F, Dah Sing Financial Centre London 111 West 57th Street 108 Gloucester Road SW1Y 4LR New York Wanchai United Kingdom NY 10019, US Hong Kong Tel: (44.20) 7830 1007 Tel: (1.212) 554 0600 Tel: (852) 2802 7288 Fax: (44.20) 7499 9767 Fax: (1.212) 586 1181/2 Fax: (852) 2802 7638 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Website: http://www.eiu.com Electronic delivery This publication can be viewed by subscribing online at http://store.eiu.com Reports are also available in various other electronic formats, such as CD-ROM, Lotus Notes, online databases and as direct feeds to corporate intranets. For further information, please contact your nearest Economist Intelligence Unit office London: Jan Frost Tel: (44.20) 7830 1183 Fax: (44.20) 7830 1023 New York: Dante Cantu Tel: (1.212) 554 0643 Fax: (1.212) 586 1181 Hong Kong: Amy Ha Tel: (852) 2802 7288/2585 3888 Fax: (852) 2802 7720/7638 Copyright © 2001 The Economist Intelligence Unit Limited. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of The Economist Intelligence Unit Limited. All information in this report is verified to the best of the author's and the publisher's ability. However, the EIU does not accept responsibility for any loss arising from reliance on it. ISSN 1366-4085 Symbols for tables “n/a” means not available; “–” means not applicable Printed and distributed by Redhouse Press Ltd, Unit 151, Dartford Trade Park, Dartford, Kent DA1 1QB, UK Papua New Guinea 1 Contents 3 Summary 4 Political structure 5 Economic structure 5 Annual indicators 6 Quarterly indicators 7 Outlook for 2001-02 7 Political outlook 8 Economic policy outlook 9 Economic forecast 12 The political scene 15 Economic policy 21 The domestic economy 21 Economic trends 23 Oil and gas 24 Mining 25 Agriculture 26 Foreign trade and payments List of tables 9 International assumptions summary 10 Forecast summary 12 World commodity price forecasts 18 Central government budget 22 Quarterly inflation 23 Money supply 25 Mineral exports, by volume 26 Agricultural exports, by volume 26 Agricultural export prices 27 Balance of payments 28 Exports 28 Exchange rates 29 Public debt outstanding EIU Country Report January 2001 © The Economist Intelligence Unit Limited 2001 2 Papua New Guinea List of figures 12 Gross domestic product 12 Kina real exchange rates 20 Interest rates 23 Kutubu oil price 24 Mineral exports 28 Exchange rates 29 External debt EIU Country Report January 2001 © The Economist Intelligence Unit Limited 2001 Papua New Guinea 3 Summary January 2001 Outlook for 2001-02 The government has been making progress in implementing its economic reform programme. However, economic activity in all sectors has been fairly subdued in 2000. The EIU estimates real GDP growth at 2.9% in 2000 and forecasts 3.8% in 2001 and 7% in 2002. Economic activity will pick up in the next few years with the development of major minerals and gas projects. Growth will also be driven by stronger domestic demand as interest rates fall. Inflation remained in 2000, but should fall in 2001 and 2002 as price stability becomes the primary focus of the Bank of Papua New Guinea (the central bank). The current account will remain in surplus in 2001 but will fall into deficit as imports of capital equipment for these projects rise significantly in 2002. The kina is steadily depreciating but should remain in an acceptably narrow trading range in 2001 and 2002 as capital inflows counterbalance the increasing demand for imports. The political scene The prime minister, Sir Mekere Morauta, will remain in office until the next election in June 2002. The integrity bill has finally been approved with the main body of the law coming into force early in 2002. There have been a number of cabinet reshuffles as Sir Mekere demands loyalty from all members of the government. There is renewed hope for the Bougainville peace talks. Tension has risen between national and provincial governments. Economic policy The 2001 “recovery to reconstruction” budget was passed in November. It is a balanced budget, if arrears are excluded, with a tax reform favouring the poor and providing incentives for mining, gas and oil exploration. Higher government revenue and a lower budget deficit are expected for 2000. The IMF released the second tranche of the stand-by arrangement in November. The central bank continues to focus on price stability with tight monetary policy. Privatisation plans are in motion. The domestic economy The government has lowered its GDP growth estimate for 2000 from 4.7% to 0.8%. Inflation is down over the quarter and the year. Interest rates continue to fall. The government is seeking financial assistance for the gas pipeline. Oil exports continue on a downward path. A binding agreement has been signed for the Ramu cobalt-nickel project but there is no third investor yet. Falling agricultural export prices have continued to hurt producers. Foreign trade and The third quarter was disappointing for foreign trade. There has been little payments respite for the falling kina. External public debt is up slightly over the third quarter. Editors: Danny Richards (editor); Graham Richardson (consulting editor) Editorial closing date: January 12th 2001 All queries: Tel: (44.20) 7830 1007 E-mail: [email protected] Next report: Full schedule on www.eiu.com/schedule EIU Country Report January 2001 © The Economist Intelligence Unit Limited 2001 4 Papua New Guinea Political structure Official name Independent State of Papua New Guinea Form of state Constitutional monarchy Head of state Queen Elizabeth II, represented by the governor-general, who is nominated by the national parliament The executive The National Executive Council, presided over by the prime minister, has executive powers; the prime minister is appointed by the head of state on the proposal of parliament National legislature Unicameral national parliament; its 109 members (currently 104 are sitting, with five vacancies) are elected for a period of five years, 89 representing “open” constituencies and the rest representing 19 provincial constituencies and the capital district Provincial government Each of the 19 provinces has its own government that may levy taxes to supplement grants received from the national government Legal system Series of regional and magistrates’ courts leading to a Supreme Court at the apex National elections June 1997; next election due June 2002 National government Sir Mekere Morauta, the leader of the People’s Democratic Movement (PDM), was elected prime minister by parliament on a vote of 99:5 on July 14th 1999. He leads a coalition government consisting
Load more

Recommended publications
  • Papua New Guinea
    Country Report Papua New Guinea Papua New Guinea at a glance: 2004-05 OVERVIEW The governing coalition, led by the prime minister, Sir Michael Somare, should have a large enough parliamentary majority to defeat a no-confidence motion, if such a motion eventuates. However, the political scene remains unsettled, and the government’s effectiveness will be limited. The economic outlook is fairly positive for 2004-05. Inflationary pressures are easing, and improvements in agriculture, mining and oil activity should contribute to a pick-up in real GDP growth of more than 2% a year in 2004-05. The current account will remain in surplus in 2004, but will shift into deficit in 2005 as export revenue slips. Key changes from last month Political outlook • The opposition applied for a motion of no confidence in early July, but its application was rejected on “technical grounds”. If Sir Michael is eventually subjected to a motion of no confidence, he should have sufficient support in parliament to defeat it, barring extraordinary circumstances. Economic policy outlook • In the first quarter the government spent only 2% of its development budget. Therefore, there will be pressure on ministries and government agencies to speed up spending, particularly counterpart spending to facilitate the disbursement of international aid. Economic forecast • The kina continues to appreciate against the US dollar. By early July the kina had strengthened by around 6% compared with its value at end-2003. Stronger import demand will put some downward pressure on the kina during the remainder of the 2004. July 2004 The Economist Intelligence Unit 15 Regent St, London SW1Y 4LR United Kingdom The Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders.
    [Show full text]
  • Papua New Guinea
    COUNTRY REPORT Papua New Guinea The full publishing schedule for Country Reports is now available on our website at http://www.eiu.com/schedule. 4th quarter 1999 The Economist Intelligence Unit 15 Regent St, London SW1Y 4LR United Kingdom The Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders. For over 50 years it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide. The EIU delivers its information in four ways: through subscription products ranging from newsletters to annual reference works; through specific research reports, whether for general release or for particular clients; through electronic publishing; and by organising conferences and roundtables. The firm is a member of The Economist Group. London New York Hong Kong The Economist Intelligence Unit The Economist Intelligence Unit The Economist Intelligence Unit 15 Regent St The Economist Building 25/F, Dah Sing Financial Centre London 111 West 57th Street 108 Gloucester Road SW1Y 4LR New York Wanchai United Kingdom NY 10019, US Hong Kong Tel: (44.20) 7830 1000 Tel: (1.212) 554 0600 Tel: (852) 2802 7288 Fax: (44.20) 7499 9767 Fax: (1.212) 586 1181/2 Fax: (852) 2802 7638 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Website: http://www.eiu.com Electronic delivery EIU Electronic New York: Lou Celi or Lisa Hennessey Tel: (1.212) 554 0600 Fax: (1.212)
    [Show full text]
  • A Trial Separation: Australia and the Decolonisation of Papua New Guinea
    A TRIAL SEPARATION A TRIAL SEPARATION Australia and the Decolonisation of Papua New Guinea DONALD DENOON Published by ANU E Press The Australian National University Canberra ACT 0200, Australia Email: [email protected] This title is also available online at http://epress.anu.edu.au National Library of Australia Cataloguing-in-Publication entry Author: Denoon, Donald. Title: A trial separation : Australia and the decolonisation of Papua New Guinea / Donald Denoon. ISBN: 9781921862915 (pbk.) 9781921862922 (ebook) Notes: Includes bibliographical references and index. Subjects: Decolonization--Papua New Guinea. Papua New Guinea--Politics and government Dewey Number: 325.953 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the publisher. Cover: Barbara Brash, Red Bird of Paradise, Print Printed by Griffin Press First published by Pandanus Books, 2005 This edition © 2012 ANU E Press For the many students who taught me so much about Papua New Guinea, and for Christina Goode, John Greenwell and Alan Kerr, who explained so much about Australia. vi ST MATTHIAS MANUS GROUP MANUS I BIS MARCK ARCH IPEL AGO WEST SEPIK Wewak EAST SSEPIKEPIK River Sepik MADANG NEW GUINEA ENGA W.H. Mt Hagen M Goroka a INDONESIA S.H. rk ha E.H. m R Lae WEST MOROBEMOR PAPUA NEW BRITAIN WESTERN F ly Ri ver GULF NORTHERNOR N Gulf of Papua Daru Port Torres Strait Moresby CENTRAL AUSTRALIA CORAL SEA Map 1: The provinces of Papua New Guinea vii 0 300 kilometres 0 150 miles NEW IRELAND PACIFIC OCEAN NEW IRELAND Rabaul BOUGAINVILLE I EAST Arawa NEW BRITAIN Panguna SOLOMON SEA SOLOMON ISLANDS D ’EN N TR E C A S T E A U X MILNE BAY I S LOUISIADE ARCHIPELAGO © Carto ANU 05-031 viii W ALLAC E'S LINE SUNDALAND WALLACEA SAHULLAND 0 500 km © Carto ANU 05-031b Map 2: The prehistoric continent of Sahul consisted of the continent of Australia and the islands of New Guinea and Tasmania.
    [Show full text]
  • Election 2007: the Shift to Limited Preferential Voting in Papua New Guinea
    ELECTION 2007 The Shift to Limited Preferential Voting in Papua New Guinea Edited by R.J. May • Ray Anere Nicole Haley • Katherine Wheen ELECTION 2007 The Shift to Limited Preferential Voting in Papua New Guinea Edited by R.J. May • Ray Anere Nicole Haley • Katherine Wheen Published by ANU E Press The Australian National University Canberra ACT 0200, Australia Email: [email protected] This title is also available online at http://epress.anu.edu.au National Library of Australia Cataloguing-in-Publication entry Title: Election 2007 : the shift to limited preferential voting in Papua New Guinea / edited by R.J. May ... [et al.]. ISBN: 9781922144294 (pbk.) 9781922144300 (ebook) Notes: Includes bibliographical references. Subjects: Elections--Papua New Guinea. Preferential ballot--Papua New Guinea. Papua New Guinea--Politics and government--1975- Other Authors/Contributors: May, R. J. (Ronald James), 1939- Dewey Number: 324.609953 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the publisher. Maps: Jennifer Sheehan, CartoGIS, ANU College of Asia and the Pacific Photograph credits: Cover: R.J. May; Chapters 5, 8, 20, 21: Nicole Haley; Chapter 19: Richard Eves Cover design and layout by ANU E Press Printed by Griffin Press First published by the Papua New Guinea National Research Institute and the State, Society and Governance in Melanesia Program, The Australian National University, 2011. This edition © 2013 ANU E Press Contents Foreword and Acknowledgements . ix Contributors . xi Part 1: Issues 1 .
    [Show full text]
  • Partners in Crime
    Partners in crime The political web that supports the illegal Kiunga Aiambak timber project Canberra Friends of PNG Association May 2002 Contents Executive summary Introduction The core of the scam Paiso Limited Concord Pacific Philip Lee Illegal Timber Authorities Illegal Tax Concessions The political web The fine detail Deputy Prime Minister Minister for Foreign Affairs Minister for Mining Minister for Works Minister for Transport Minister for Agriculture Ex Minister for Finance Ex Minister for Forests Governor of Milne Bay Member for North Waghi Member for Middle Fly Governor of Western Province Attorney General Ex Forest Authority Managing Director Ex Secretary for Agriculture Secretary for Lands Prime Minister Appendices Background documentation Executive summary The Kiunga Aiambak timber project has been operating since 1994. The project is widely known to be totally illegal and the PNG Forest Authority accepted this as early as 1995.1 The illegality of the project was confirmed in the Independent Forestry Review (2001)2 and has been publicly acknowledged by the Prime Minister.3 Local landowners have been complaining since 1995, calling for an Ombudsman Inquiry and for the project to be shut down.4 However the project is still on going with more than US$50 million worth of logs having been exported. Meanwhile the Government has lost out on potential tax revenues because of illegal tax exemptions given to the project and the local people have suffered a catalogue of negative social and environmental impacts. So why has no effective action been taken to stop the project and prosecute some of those who have been involved? The map below may begin to give an answer to this question and should be seen in the context of the widespread allegations of political corruption and institutionalised mismanagement in the forest industry.
    [Show full text]
  • FIRST DAY 3 August 2012 DRAFT HANSARD Subject; Page
    FIRST DAY 3 August 2012 DRAFT HANSARD Subject; Page No. PRAYERS 1 COMMISSION TO ADMINISTER DECLARATIONS - CHIEF JUSTICE 2 RETURNS OF WRITS 2 DECLARATION OF OFFICE AND OF LOYALTY 7 ELECTION OF THE SPEAKER 7 DECLARATION OF OFFICE AND OF LOYALTY - COMMISSION 9 ELECTION OF THE PRIME MINISTER 10 PRESENTATION OF PRIME MINISTER-ELECT TO THE GOVERNOR-GENERAL 12 SPECIAL ADJOURNMENT 26 ADJOURNMENT 26 PARLIAMENTARY DEBATES CORRECTIONS TO DAILY DRAFT HANSARD The Draft Hansard is uncorrected. It is also privileged. Members have one week from the date of this issue of Draft Hansard in which to mate'coirectioiis to their speeches. Until the expiration of this one week period, Draft Hansard must not be quoted as a final and accurate report of the debates of the National Parliament Cnrrectirmg maybe marked on a photocopy of the Daily Draft Hansard and lodged at the Office of the Principal Parliamentary Reporter, Al-23 (next to the Security Control Room). Corrections should be authorised by signature and contain-liieitame, office and telephone number of the person Iransmitting/making the corrections. Amendments -cannot-be accepted over the phone. Corrections should relate only to inaccuracies. New matter may not be introduced. Sanrfa M. Haro PrinciDal Parliamentarv Reoorter FIRST DAY Friday 3 August, 2012 The National Parliament met at 10.00 a.m., pursuant to the Notice of His Excellency the Governor-General, Sir Michael Ogio, which was published in the National Gazette. The Clerk read the Notice. PRAYERS Rev Qogi Zonggereng, Papua District President of the Evangelical Lutheran of Papua New Guinea representing the Council of Churches to say Prayers: 'This is the day that the Lord has made, a reading from Psalm 1.
    [Show full text]
  • I2I Text Paste Up
    PART 3: THE LIMITS OF INDEPENDENCE Chapter 12 Independence and its Discontents apua New Guineans handled the transition to independence with flair, despite their Plimited experience, the speed with which they had to act and the explosive agenda that they inherited. With great skill and some luck, they brought their country united to independence with new institutions, a new public service, a guaranteed income and a home-made constitution. A Failing State? The coalition that achieved these feats tottered in 1978 when Julius Chan took the PPP into opposition, and collapsed in March 1980 when the Leader of the Opposition, Iambakey Okuk, won a no-confidence motion, naming Chan as preferred Prime Minister. Chan had quit the coalition over the attempt to buttress the Leadership Code (Chapter 9) and disagreement on relations between private business and public office. Somare returned to office after the 1982 election but once again he was ousted in mid- term by a vote of no confidence, yielding to the ambitious young Western Highlander Paias Wingti. The pattern was now set, whereby coalitions are formed after an election but no government survives the fixed five-year parliamentary term. Votes of no confi- dence are the mechanism for replacing one opportunist coalition with another. By this device, Wingti was replaced by Rabbie Namaliu, who yielded to Wingti again, who was replaced by Chan, whose coalition collapsed in the wake of a bungled attempt to employ mercenaries (see below). After the 1997 election, Bill Skate — a gregarious accountant from Gulf Province, Governor of Port Moresby and cheerful opportunist — held a Cabinet together for nearly two years.
    [Show full text]
  • Chapter 4: the Peace Negotiations and the Prospects for a Permanent
    4 7KH3HDFH1HJRWLDWLRQVDQGWKH3URVSHFWV IRUD3HUPDQHQW3HDFH Introduction 4.1 In a statement to Parliament on 9 June 1999, the Minister for Foreign Affairs drew attention to the progress that had been made since the formal Bougainville peace process began in mid 1997: Although there will always be day-to-day problems and crises along the path towards a lasting peace, it is worth reflecting just how far the parties have come in barely two years since the peace process started. There has been no fighting during that time. Bougainvilleans are now going about their daily lives without fear and are travelling more widely on the island. The Bougainville economy is showing the first tentative signs of activity. That such considerable progress has been made is in large part a tribute to the commitment and flexibility personally demonstrated by Papua New Guinea's [then] Prime Minister, Bill Skate, as well as his government, most notably the [then] Minister for State, Sam Akoitai. It is also a tribute to all the leaders of Bougainville and, most particularly, to all Bougainvilleans. It is their peace process.1 4.2 Material in this chapter sets out the landmarks in the peace process since the first Burnham meeting, the successes and setbacks in the peace negotiations, and examines the issues still to be resolved by the parties. 1 Hon Alexander Downer MP, Minister for Foreign Affairs, House of Representatives Hansard, p. 5157. 64 Australia's role as a neutral observer of the process and significant contributor in the form of substantial official aid and facilitator of the dialogue, is also discussed.
    [Show full text]
  • Wednesday 16 October 2019 DRAFT HANSARD
    SIXTH DAY ___________________________ Wednesday 16 October 2019 DRAFT HANSARD __________________________ Subject: Page No.: DEATH OF FORMER MEMBER (Mr JOE KOIM KOMUN) – STATEMENT BY THE ACTING SPEAKER ............................................................................... 1 ACKNOWLEDGMENT OF STUDENTS (Paradise International School, Launakalana Primary School and Oroi Primary School) – STATEMENT BY THE ACTING SPEAKER ..................................................................................................................... 2 QUESTIONS .................................................................................................................................................................................................................................. 2 Public Service Manpower Audit ......................................................................................................................................................................................... 2 PNG’s Foreign Policy ......................................................................................................................................................................................................... 5 Fund ABG Health Infrastructure ........................................................................................................................................................................................ 6 Northern – Non-functional Operating Theatre ..................................................................................................................................................................
    [Show full text]
  • 05144-9781452721514.Pdf
    © 2007 International Monetary Fund March 2007 IMF Country Report No. 07/112 Papua New Guinea: Selected Issues Paper and Statistical Appendix This Selected Issues and Statistical Appendix paper for Papua New Guinea was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on February 20, 2007. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of the Papua New Guinea or the Executive Board of the IMF. The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information. To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to [email protected]. Copies of this report are available to the public from International Monetary Fund Ɣ Publication Services 700 19th Street, N.W. Ɣ Washington, D.C. 20431 Telephone: (202) 623 7430 Ɣ Telefax: (202) 623 7201 E-mail: [email protected] Ɣ Internet: http://www.imf.org Price: $18.00 a copy International Monetary Fund Washington, D.C. ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution INTERNATIONAL MONETARY FUND PAPUA NEW GUINEA Selected Issues and Statistical Appendix Prepared by Ebrima Faal, Qaizar Hussain, and Aiko Mineshima (all APD) Approved by the Asia and Pacific Department February 20, 2007 Contents Page I. Political Budget Cycles in Papua New Guinea............................................................2 II.
    [Show full text]
  • Papua New Guinea
    Country Report July 2003 Papua New Guinea Papua New Guinea at a glance: 2003-04 OVERVIEW Papua New Guinea (PNG) will benefit from a sustained period of relative political stability, as the prime minister, Sir Michael Somare, is assured of a full five-year term, barring extraordinary circumstances. However, there is little prospect that his government will prove any more capable than its pre- decessors of overcoming PNG’s immense social and economic problems. The government’s finances are in disarray and it is in dire need of international financial support. Sir Michael will therefore be under pressure to implement domestically unpopular economic reforms. The economy will remain depressed in 2003, but there will be some positive developments in agriculture and mining that will contribute to economic growth in 2004. Key changes from last month Political outlook • Sir Michael maintains that his leadership is not under threat and that he will lead the governing coalition until the next general election in 2007. However, he plans to make controversial amendments to the constitution to protect further his tenure of office. Economic policy outlook • The government is struggling with a shortage of funds and has resorted to borrowing from domestic sources, which has pushed up Treasury bill rates to more than 20%, compared with around 10% in early 2002. However, a mini-budget is unlikely to be introduced. Economic forecast • According to preliminary data from the central bank, consumer prices increased by more than 20.7% year on year in the first quarter of 2003. The central bank has raised its benchmark interest rate in an effort to ease inflationary pressures.
    [Show full text]
  • Papua New Guinea
    Papua New Guinea KEY FACTS Joined Commonwealth: 1975 Population: 7,321,000 (2013) GDP p.c. growth: 1.9% p.a. 1990–2013 UN HDI 2014: World ranking 157 Official language: English Time: GMT plus 10 hrs Currency: Kina (K) Geography Area: 462,840 sq km Coastline: 5,150 km Capital: Port Moresby The Independent State of Papua New Guinea in the South Pacific shares a land-border with Indonesia; its other near neighbours are commercial demand for tropical timber; Arawa (on Bougainville, 38,600), Mount Australia to the south and Solomon Islands to pollution from mining projects; and severe Hagen (Western Highlands, 29,176), Madang the east. drought. (Madang, 29,100), Wewak (East Sepik, Papua New Guinea includes the eastern half Vegetation: Rich and very varied: five kinds 27,031), Goroka (Eastern Highlands, 16,700), of the world’s second biggest island, New of lowland, and 13 kinds of mountain Kimbe (on New Britain, 16,004), Daru (Fly Guinea, bordering the Indonesian province of rainforest, five kinds of palm and swamp River, 14,373), Vanimo (Sandaun, 13,357), Irian Jaya to the west. The rest of the country forests, three differing mangrove forests, and Alotau (Milne Bay, 12,628), Kundiawa is made up of about 600 small islands, the the world’s greatest variety of orchid species. (Simbu, 11,455), Popondetta (Oro, 10,200), chief of which are the Bismarck Archipelago, Forest covers 63 per cent of the land area, Kavieng (on New Ireland, 9,900), Bulolo the Trobriands, the Louisiade Archipelago, the having declined at 0.5 per cent p.a.
    [Show full text]