Business leaders in Papua New Guinea (PNG) are navigating some of the most challenging conditions in Asia Pacific. Global demand for PNG’s natural resources is no longer fueling outsized economic growth. Domestic GDP growth is forecast by the World Bank to decelerate sharply this year, reflecting the swift downturn in oil and gas prices. The near-term headwinds are evident: business leaders in PNG are among the most pessimistic in APEC about revenue growth in 2016-2017.
They are positioning for a changing business environment. Barring major developments for commodities exporters, PNG’s growth and foreign business investor interest will shift to different drivers and sectors. This is drawing PNG’s economic relationships with the region into sharper focus for PNG business leaders: most see momentum on economic integration slowing or stalling. At the same time, most expect regulatory conditions to become more important to cross-border investment decisions.
This report reflects the perspectives of 39 business leaders in PNG compared with all 1,154 business leaders (APEC CEOs), surveyed from May-July 2016.
