Budget 2023: Staying the course?
Papua New Guinea (PNG) has navigated the pandemic well. GDP growth in 2022 has improved, following weak growth over the past 3 years. GDP is now expected to be above 2019 levels in 2022. In 2023 the PNG economy is expected to grow by 4.5 per cent in real terms.
Government spending has provided a buffer to the COVID-19 impacts on the economy and has helped mitigate health impacts on households. As a result, debt has increased, as has been the case in most economies including PNG’s neighbours during the pandemic. Looking forward, the Government has committed the 2022 and 2023 budgets to the difficult task of returning PNG to a stronger fiscal position. This will take time, but fiscal consolidation is required to strengthen debt sustainability and rebuild additional resilience into the PNG budget as an insurance policy against future shocks.
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Jonathan Seeto
Managing Partner, PwC Papua New Guinea
Tel: +675 321 1500 | 305 3100
Peter Burnie
Partner, PwC Papua New Guinea
Tel: +675 321 1500 | 305 3100