Edward Faber,

Country Economist for the Asian Development Bank, gave a bullish assessment of PNG’S medium term prospects. He expects to see ‘significant future growth’ coming from 2020 onwards with new resource projects and infrastructure development.

‘The fiscal consolidation strategy of the government is on target and the forex backlog has reduced.’

Faber said GDP growth in 2019 is expected to be between three and four per cent due to a rebound in LNG, oil and gold production.

‘Looking ahead to 2020, we then expect the two LNG projects to come on stream and that will lead to a new growth phase (see page 32).

‘We also have Wafi-golpu, which will be a US$2.8 billion investment. We also have the China One Belt One Road initiative where they potentially have pledged US$3 billion. Wafi will be in an area with a lot of potential for agriculture and they will be putting roads in so it can also help the non-mining sector.’

Edward Faber, Country Economist for the ADB.