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Encyclopedia > Economy of Papua New Guinea
Economy of Papua New Guinea
Currency kina (PGK)
Fiscal year calendar year
Trade organisations WTO, APEC
Statistics
GDP (PPP) $14.37 billion (2005 est.) (130th [1])
GDP growth 2.9% (2005 est.)
GDP per capita $2,600 (2005 est.)
GDP by sector agriculture: 35.3%, industry: 38.1%, services: 26.6% (2005 est.)
Inflation (CPI) 1.7% (2005 est.)
Pop below poverty line 37% (2002 est.)
Labour force 3.4 million (2005 est.)
Labour force by occupation agriculture: 85%
Unemployment up to 80% in urban areas (2005)
Main industries copra crushing, palm oil processing, plywood production, wood chip production; mining of gold, silver, and copper; crude oil production, petroleum refining; construction, tourism
Trading Partners
Exports $2.833 billion f.o.b. (2005 est.)
Export goods oil, gold, copper ore, logs, palm oil, coffee, cocoa, crayfish, prawns
Main export partners Australia 28.9%, Japan 8.6%, China 5.4% (2005)
Imports $1.651 billion f.o.b. (2005 est.)
Import goods machinery and transport equipment, manufactured goods, food, fuels, chemicals
Main import partners Australia 55.6%, Singapore 13.7%, Japan 4.4% (2005)
Public finances
Public debt $1.882 billion (2005 est.)
Revenues $1.368 billion
Expenses $1.354 billion; including capital expenditures of $344 million (2005 est.)
Economic aid no data
Main source [2]
All values, unless otherwise stated, are in US dollars

Papua New Guinea is richly endowed with natural resources, but exploitation has been hampered by the rugged terrain and the high cost of developing infrastructure. Agriculture provides a subsistence livelihood for the bulk of the population. Mineral deposits, including oil, copper, and gold, account for 72% of export earnings. Budgetary support from Australia and development aid under World Bank auspices have helped sustain the economy. In 1995, Port Moresby reached an agreement with the International Monetary Fund (IMF) and World Bank on a structural adjustment program, of which the first phase was successfully completed in 1996. In 1997, droughts caused by the El Niño weather pattern wreaked havoc on Papua New Guinea's coffee, cocoa, and coconut production, the mainstays of the agricultural-based economy and major sources of export earnings. The coffee crop was slashed by up to 50% in 1997. Despite problems with drought, the year 1998 saw a small recovery in GDP. Growth increased to 3.6% in 1999 and may be even higher in 2000, say 4.3%. This article or section does not cite its references or sources. ... The Asia-Pacific Economic Cooperation (APEC) is an economic forum for a group of Pacific Rim countries to discuss matters on regional economy, cooperation, trade and investment. ... The Purchasing power parity (PPP) theory was developed by Gustav Cassel in 1920. ... Map of world GDP (PPP) by country using the IMF list for 2005 There are three lists of countries of the world sorted by their gross domestic product (GDP) (the value of all final goods and services produced within a nation in a given year). ... In economics, a consumer price index (CPI) or retail price index (RPI) is a statistical time-series measure of a weighted average of prices of a specified set of goods and services purchased by consumers. ... Map of countries showing percentage of population who have an income below the national poverty line The poverty line is the level of income below which one cannot afford to purchase all the resources one requires to live. ... An 1837 political cartoon about unemployment in the United States. ... ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory,[1] the British Virgin Islands, Cambodia, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Turks and Caicos Islands, and the insular areas of the United States Inflation 2. ... Minerals are natural compounds formed through geological processes. ... Pumpjack pumping an oil well near Lubbock, Texas Ignacy Łukasiewicz - inventor of the refining of kerosene from crude oil. ... General Name, Symbol, Number copper, Cu, 29 Chemical series transition metals Group, Period, Block 11, 4, d Appearance metallic pinkish red Standard atomic weight 63. ... GOLD refers to one of the following: GOLD (IEEE) is an IEEE program designed to garner more student members at the university level (Graduates of the Last Decade). ... It has been suggested that Official Development Assistance, Foreign aid, Tied aid, Aid effectiveness, Output-based aid be merged into this article or section. ... Logo of the World Bank The International Bank for Reconstruction and Development (IBRD, in Romance languages: BIRD), better known as the World Bank, is an international organization whose original mission was to finance the reconstruction of nations devastated by WWII. Now, its mission has expanded to fight poverty by means... Port Moresby town Port Moresby, (), population 255,000 (2000), is the capital of Papua New Guinea. ... “IMF” redirects here. ... Chart of ocean surface temperature anomaly [°C] during the last strong El Niño in December 1997 El Niño and La Niña (also written in English as El Nino and La Nina) are major temperature fluctuations in surface waters of the tropical Eastern Pacific Ocean. ... A cup of coffee Workers sorting and pulping coffee beans in Guatemala Coffee is a widely consumed beverage prepared from the roasted seeds — commonly referred to as beans — of the coffee plant. ... Cocoa beans in a cacao pod Cocoa is the dried and partially fermented fatty seed of the cacao tree from which chocolate is made. ... Binomial name Cocos nucifera L. For other uses, see Coconut (disambiguation). ...

Contents

Economy - in greater depth

The economy generally can be separated into subsistence and market sectors, although the distinction is blurred by smallholder cash cropping of coffee, cocoa, and copra. About 75% of the country's population relies primarily on the subsistence economy. The minerals, timber, and fish sectors are dominated by foreign investors. Manufacturing is limited, and the formal labour sector consequently also is limited.


Mineral Resources

In 1999 mineral production accounted for 26.3% of gross domestic product. Government revenues and foreign exchange earning depend heavily on mineral exports. Indigenous landowners in areas affected by minerals projects also receive royalties from those operations. Papua New Guinea is richly endowed with gold, copper, oil, natural gas, and other minerals. Copper and gold mines are currently in production at Porgera, Ok Tedi, Misima, and Lihir. New nickel, copper and gold projects have been identified and are awaiting a rise in commodity prices to begin development. A consortium led by Chevron is producing and exporting oil from the Southern Highlands Province of Papua New Guinea. In 2001, it expects to begin the commercialization of the country's estimated 640 km³ (23 trillion cubic feet) of natural gas reserves through the construction of a gas pipeline from Papua New Guinea to Queensland, Australia. IMF 2005 figures of total GDP of nominal compared to PPP. Absolute, not adjusted for population. ... The Ok Tedi is a river in Papua New Guinea. ... Misima or Saint Aignan is a volcanic island in Louisiade Archipelago (Milne Bay Province of Papua New Guinea). ... Lihir Group seen from space (Mahur Island not visible) Lihir Island is the largest island of the Lihir Group, Papua New Guinea, at . ... Chevron Corporation (NYSE: CVX) is one of the worlds largest global energy companies. ... This list compares various sizes of positive numbers, including counts of things, dimensionless numbers and probabilities. ... Motto: Audax at Fidelis (Bold but Faithful) Other Australian states and territories Capital Brisbane Governor HE Ms Quentin Bryce Premier Peter Beattie (ALP) Area 1,852,642 km² (2st)  - Land 1,730,648 km²  - Water 121,994 km² (6. ...


Agriculture, Timber, and Fish

Papua New Guinea also produces and exports valuable agricultural, timber, and fish products. Agriculture currently accounts for 25% of GDP and supports more than 80% of the population. Cash crops ranked by value are coffee, oil, cocoa, copra, tea, rubber, and sugar. The timber industry was not active in 1998, due to low world prices, but rebounded in 1999. About 40% of the country is covered with exploitable trees, and a domestic woodworking industry has been slow to develop. Fish exports are confined primarily to shrimp. Fishing boats of other nations catch tuna in Papua New Guinea waters under license. A cup of coffee Workers sorting and pulping coffee beans in Guatemala Coffee is a widely consumed beverage prepared from the roasted seeds — commonly referred to as beans — of the coffee plant. ... Pumpjack pumping an oil well near Lubbock, Texas Ignacy Łukasiewicz - inventor of the refining of kerosene from crude oil. ... Cocoa beans in a cacao pod Cocoa is the dried and partially fermented fatty seed of the cacao tree from which chocolate is made. ... Copra drying in the sun Copra is the dried meat, or kernel, of the coconut. ... Look up tea in Wiktionary, the free dictionary. ... Latex being collected from a tapped rubber tree Rubber is an elastic hydrocarbon polymer which occurs as a milky colloidal suspension (known as latex) in the sap of several varieties of plants. ... Magnification of grains of sugar, showing their monoclinic hemihedral crystalline structure. ...


Papua New Guinea is the largest yam market in Asia.


Industry

In general, the Papua New Guinea economy is highly dependent on imports for manufactured goods. Its industrial sector--exclusive of mining--accounts for only 9% of GDP and contributes little to exports. Small-scale industries produce beer, soap, concrete products, clothing, paper products, matches, ice cream, canned meat, fruit juices, furniture, plywood, and paint. The small domestic market, relatively high wages, and high transport costs are constraints to industrial development.


Trade and Investment

Australia, Singapore, and Japan are the principal exporters to Papua New Guinea. Petroleum, mining machinery and aircraft are perennially the strongest U.S. exports to Papua New Guinea. In 1999, as mineral exploration and new minerals investments declined, so did United States exports. Australia is Papua New Guinea's most important export market, followed by Japan and the European Union. Crude oil is the largest U.S. import from Papua New Guinea, followed by gold, cocoa, coffee, and copper ore. GOLD refers to one of the following: GOLD (IEEE) is an IEEE program designed to garner more student members at the university level (Graduates of the Last Decade). ... Cocoa beans in a cacao pod Cocoa is the dried and partially fermented fatty seed of the cacao tree from which chocolate is made. ... General Name, Symbol, Number copper, Cu, 29 Chemical series transition metals Group, Period, Block 11, 4, d Appearance metallic pinkish red Standard atomic weight 63. ...


U.S. companies are active in developing Papua New Guinea's mining and petroleum sectors. Chevron operates the Kutubu and Gobe oil projects and is developing its natural gas reserves. A 5,000 to 6,000 m³; (30,000-40,000 barrel) per day oil refinery project in which there is an American interest also is under development in Port Moresby. Lake Kutubu is a lake in the Southern Highlands province of Papua New Guinea. ... Gobe Software was a software company that published an integrated desktop software suite for BeOS. In later years, they were the publishers of BeOS itself. ... Port Moresby town Port Moresby, (), population 255,000 (2000), is the capital of Papua New Guinea. ...


Papua New Guinea became a participating economy in the Asia-Pacific Economic Cooperation (APEC) Forum in 1993. It joined the World Trade Organization (WTO) in 1996. The Asia-Pacific Economic Cooperation (APEC) is an economic forum for a group of Pacific Rim countries to discuss matters on regional economy, cooperation, trade and investment. ... This article or section does not cite its references or sources. ...


Development Programs and Aid

Papua New Guinea is highly dependent on foreign aid. Australia is the largest bilateral aid donor to Papua New Guinea, offering about US$200 million a year in assistance. Budgetary support, which has been provided in decreasing amounts since independence, was phased out in 2000, with aid concentrated on project development. Other major sources of aid to Papua New Guinea are Japan, the European Union, the People's Republic of China, the Republic of China, the United Nations, the Asian Development Bank, the International Monetary Fund, and the World Bank. Volunteers from a number of countries, including the United States, and mission church workers also provide education, health, and development assistance throughout the country. It has been suggested that this article or section be merged into Development aid. ... The Republic of China is commonly known as Taiwan or Chinese Taipei, and it is not to be confused with the Peoples Republic of China. ... The foundation of the U.N. The United Nations (UN) is an international organization whose stated aims are to facilitate co-operation in international law, international security, economic development, social progress and human rights issues. ... The Asian Development Bank (ADB) is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific. ... “IMF” redirects here. ... Logo of the World Bank The International Bank for Reconstruction and Development (IBRD, in Romance languages: BIRD), better known as the World Bank, is an international organization whose original mission was to finance the reconstruction of nations devastated by WWII. Now, its mission has expanded to fight poverty by means...


Current Economic Conditions

(as of 2003)

By mid-1999, Papua New Guinea's economy was in crisis. Although its agricultural sector had recovered from the 1997 drought and timber prices were rising as most Asian economies recovered from their 1998 slump, Papua New Guinea's foreign currency earnings suffered from low world mineral and petroleum prices. Estimates of minerals in exploration expenditure in 1999 were one-third of what was spent in 1997. The resulting lower foreign exchange earnings, capital flight, and general government mismanagement resulted in a precipitous drop in the value of Papua New Guinea's currency, the kina, leading to a dangerous decrease in foreign currency reserves. The kina has floated since 1994. Economic activity decreased in most sectors; imports of all kinds shrunk; and inflation, which had been over 21% in 1998, slowed to an estimated annual rate of 8% in 1999.


Citing the previous government's failure to successfully negotiate acceptable commercial loans or bond sales to cover its budget deficit, the government formed by Sir Mekere Morauta in July 1999 successfully requested emergency assistance from the International Monetary Fund and the World Bank. With assistance from the Fund and the Bank, the government has made considerable progress toward macroeconomic stabilization and economic reform. Sir Mekere Morauta (b. ...


Statistics

Household income or consumption by percentage share:
lowest 10%: 1.7%
highest 10%: 40.5% (1996)


Labour force: 1.941 million


Electricity - production: 1,700 GWh (1998)


Electricity - production by source:
fossil fuel: 69.54%
hydro: 30.46%
nuclear: 0%
other: 0% (1998)


Electricity - consumption: 1,600 GWh (1998)


Electricity - exports: 0 kWh (1998)


Electricity - imports: 0 kWh (1998)


Agriculture - products: coffee, cocoa, coconuts, palm kernels, tea, rubber, sweet potatoes, fruit, vegetables; poultry, pork, vanilla A cup of coffee Workers sorting and pulping coffee beans in Guatemala Coffee is a widely consumed beverage prepared from the roasted seeds — commonly referred to as beans — of the coffee plant. ... Cocoa beans in a cacao pod Cocoa is the dried and partially fermented fatty seed of the cacao tree from which chocolate is made. ... Binomial name Cocos nucifera L. For other uses, see Coconut (disambiguation). ... Look up tea in Wiktionary, the free dictionary. ... Latex being collected from a tapped rubber tree Rubber is an elastic hydrocarbon polymer which occurs as a milky colloidal suspension (known as latex) in the sap of several varieties of plants. ... Binomial name Ipomoea batatas Linnaeus The sweet potato (Ipomoea batatas) is a crop plant whose large, starchy, sweet tasting tuberous roots are an important root vegetable. ...


Currency: 1 kina (K) = 100 toea


Exchange rates: kina (K) per US$1 - 2.7624 (November 1999), 2.520 (1999), 2.058 (1998), 1.434 (1997), 1.318 (1996), 1.276 (1995)


See also


  Results from FactBites:
 
Papua New Guinea (678 words)
Papua New Guinea is a country in Oceania, occupying the eastern half of the island of New Guinea (the other half, Irian Jaya is part of Indonesia).
The name of the country was also given in that era; Papua is derived from a Malay word describing the frizzly Melanesian hair, and New Guinea was the name given by a Spanish explorer because of the resemblance with the population of the Guinese in Africa.
Papua New Guinea is a member of the Commonwealth and Queen Elizabeth II is the head of state.
Papua New Guinea - Wikipedia, the free encyclopedia (2095 words)
The Independent State of Papua New Guinea (informally, Papua New Guinea or PNG) is a country in Oceania, occupying the eastern half of the island of New Guinea and numerous offshore islands (the Indonesian provinces of Papua (Indonesian province) and West Irian Jaya (Irian Jaya Barat) occupy the western half of New Guinea).
The country was named in the 19th century; the word "Papua" is derived from a Malay word describing the frizzy Melanesian hair, and "New Guinea" was the name coined by a Spanish explorer because of the population's resemblance to that of Guinea in Africa.
Papua New Guinea is a member of the Commonwealth of Nations and Queen Elizabeth II is the head of state.
  More results at FactBites »

 
 

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