Papua New Guinea
Author: International Monetary Fund. Asia and Pacific Dept
Publisher: International Monetary Fund
Published: 2017-01-30
Total Pages: 66
ISBN-13: 1475572395
DOWNLOAD EBOOKThis 2016 Article IV Consultation highlights that Papua New Guinea is facing headwinds stemming from low commodity prices and is recovering from a major drought; these factors have weighed on economic growth, weakened the external position, and created fiscal challenges. Foreign exchange (FX) remains in short supply, but inflows have recently picked up somewhat. Near-term risks to the outlook are tilted to the downside, as fiscal retrenchment may have a greater impact on the economy than currently expected and the limited availability of FX continues to constrain imports and economic activity. A further drop in commodity prices would weaken the external and fiscal positions.