GDP to grow by 4pc: Treasurer

The Government expects real GDP growth to pick up by 4 percent in 2019.

Deputy Prime Minister, Charles Abel, said this during the 3rd Petroleum and Energy Summit.

He said there were further encouraging signs with a modest but steady decline in inflation, which is expected to be around 5.4 percent.

The Deputy Prime Minister said Treasury will soon release the final Budget outcome for 2018 and there are some positive signs.

“I’m very pleased to report that after some difficulties were now seeing a welcome rebound in the economy and for your part, I want to thank you as investors in our country,” Abel said.

“While there is room for improvement it is clear that our collaborative approach and the policies of this government are taking us in the right direction.

“We are projecting real GDP growth to pick up to 4 percent this year.

“We have begun to address many problems of the past, and of course in recent years we have focused on the FX imbalance and I’m pleased to say that the banks are saying that these should be extinguished by mid year and this is largely due to the strategies in the 25-point plan, including the external or re-financing strategy that we pursued last year and of course, the successful sovereign bond issue.”

He said 2019 expects to be another positive year with upcoming projects as they continue to meet its commitments.

Abel further outline some of their achievements:

  • The continued payment of Government arrears to the private sector
  • Clearing the superannuation’s arrears that have accumulated
  • The target infrastructure roll out program
  • Submarine cable project, both domestic and international
  • The highlands highway and the important airport facilities that they continue to invest in a  major way, and
  • The likelihood of construction starting on the Papua LNG and the Wafi-Golpu, Frieda River Project and the re-negotiation of the Porgera Mine Project
Cedric Patjole