PM says Melanesia will benefit from PNG's Economy

Papua New Guinea's Prime Minister, Peter O'Neill says the economic prosperity and affluence of Papua New Guinea must be shared, and benefit all Melanesian countries. Mr O'Neill was speaking when commissioning the Papua New Guinea chancery in Honiara, Solomon Islands.

He says PNG businesses are slowly spreading to the other Melanesian countries, not to be overriding, but to share their economic success by creating jobs and creating tax income for local governments.

Mr O'Neill says PNG's economy is growing at a rate of 9-percent for the past 10 to 14 years, and it will continue to grow at the same rate for the next 10 to 14 years’ time. Peter O'Neill says PNG plans to open a chancery in Paris, and also one in Suva.

According to the Treasury Minister Patrick Pruaitch, Papua New Guinea Economy is expected to grow by 11.3 per cent – lower than the projected 15.5 per cent. He furnished Parliament an update on the 2015 budget and the state of the economy. “In 2015, the economy is expected to grow by 11.3 per cent, slightly lower than the 15.5 per cent projected in the 2015 budget,” Pruaitch said.

“This is due to the increased rate of gas production achieved in 2014, which has lowered the growth in gas production expected in the 2015 budget.

“After the drop in non-mining GDP, revised down from 1.4 per cent to 1.2 per cent in 2014, a turnaround in non-mining GDP is expected in 2015 with improvements in agriculture, forestry, and fisheries. “Weakening Government revenues is anticipated to reduce total revenue and grants by K1.3 billion this year, the second consecutive fall experienced by this Government.

“To date, total expenditure and net lending has been maintained in line with the 2015 budget.

“I have tasked Treasury to plan a mini-budget in the next couple of months to ensure the Government continues to implement prudent and sustainable macroeconomic policies.”