ADB encourages diversification in PNG

8:10 am on 8 April 2016

Papua New Guinea should diversify its economy according to the Asian Development Bank.

In its latest outlook it said while the country has enjoyed robust growth over the last decade, it now has to deal with volatile global commodity prices.

The ADB said PNG will reach economic growth of 4.3% this year, nearly halving to 2.4% in 2017.

The PNG country director for the Bank, Marcelo Minc, said diversification is very important if the country is to achieve its economic potential.

He said improving infrastructure and expanding private sector participation are the keys to this.

The Bank calls the medium-term outlook for PNG's economy positive, with growth expected to pick up in 2018.

But it said the fall in oil prices has dampened investment expectations in the mineral sector, the sector which was ear-marked as the source of this medium term growth with the start of large mining projects.