PRIME James Marape has acknowledged the International Monetary Fund (IMF) for their constructively positive analysis of the Marape-Rosso Government’s management of Papua New Guinea’s economy, amidst an unpredictable global economic environment.
Mr. Marape also appreciated the IMF for recently approving a 24-month arrangement under the Resilience and Sustainability Facility (SF) for Papua New Guinea totalling US$265 million.
Given the IMF’s commendations to the Marape-Rosso Government for enabling substantial progress in PNG’s reform agenda to set the country on the path to economic
recovery and prosperity, PM Marape said: “The IMF’s positive analysis of PNG’s economy and acknowledgement of my government in terms of successfully dealing with budgetary repair, enhancing governance and transparency, as well as handling well the foreign exchange and monetary policy operations of our country, strongly indicates the great work that this Government has put into transforming our economy, since taking office in 2019.”
PM Marape said the IMF reached agreement and provided analysis in relation to the PNG Economy.
“Papua New Guinea authorities and the IMF team reached staff-level agreement on the request for access under the Resilience and Sustainability Facility (RSF) for about US$265 million to enhance resilience to climate change
“The authorities and the IMF team also reached staff-level agreement on the third reviews of the authorities’ reform program supported by the IMF’s Extended Credit Facility and the Extended Fund Facility.
“Papua New Guinea’s outlook remains positive, with economic growth increasing to 4.5 percent in 2024 from 2.9 percent in 2023, and PNG authorities continue to make progress in implementing their home-grown economic reform program.
“The authorities and the IMF team also reached staff-level agreement on the third reviews of the authorities’ reform program supported by the IMF’s Extended Credit Facility and the Extended Fund Facility.”
PM Marape said: “Papua New Guinea’s outlook remains positive, with economic growth increasing to 4.5 percent in 2024 from 2.9 percent in 2023, and PNG authorities continue to make progress in implementing their home-grown economic reform program.”
He said the IMF analysis of the PNG Economy positively outlined that PNG’s economic growth is expected to increase to 4.5 percent in 2024 from 2.9 percent in 2023, supported by the resumption of activities at the Porgera gold mine and improvements in access to foreign exchange.
Average headline inflation is projected to remain historically low at 1.3 percent in 2024, while core inflation, which excludes volatile items such as betel-nut, is projected to moderately increase to 3.9 percent in 2024, while staying below the historical average, mainly driven by food and transportation costs.
Gross international reserves stood at US$3.2 billion at end-June 2024, providing space to continue implementing central banking reforms.
One of the latest Statements from IMF said: “Performance since the start of the ECF- EFF arrangements has been strong. The government of PNG has continued to make
progress in implementing its structural reform agenda, focused on advancing budget repair, modernizing central banking, and improving governance. These reforms are
bearing fruit, with notable positive outcomes including: the easing of foreign exchange shortages, which contributes to improving the business environment; the reduction of excess liquidity in the banking sector, which enhances monetary policy transmission; a lower fiscal deficit, which strengthens public debt sustainability; and progress in the operationalisation of the anti-corruption framework.”
“The government remains committed to an ambitious fiscal consolidation strategy set out in its 13-year budget repair plan.”
“After reducing the fiscal deficit by 0.9 percentage points of GDP in 2023, while creating space for more social spending, the authorities are on track to deliver an additional 0.4 percentage points of GDP reduction in 2024.
“The authorities remain committed to implementing their prudent borrowing strategy aimed at preserving debt sustainability.”
Prime Minister Marape stated that his government is geared towards helping the people of Papua New Guinea and providing relief for them under difficult situations
which can be clearly seen in the 2025 and prior National Budgets.
