Overview Papua New Guinea

Show region Asia and Oceania

A series of controversies involving the government, such as exorbitant land acquisitions and project licensing, increased tensions. Prime Minister Peter O’Neill resigned due to allegations of corruption and was replaced by James Marape on May 30th, 2019.

2020 was a devastating year for the PNG economy and its public finances, although the country was only mildly affected by COVID-19. While public sector spending rose significantly, budget deficits remained. The collapse of oil, gas, vegetable oil and copper prices negatively affected PNG’s export revenues.

The ‘taking back’ attitude of the government was heavily criticized, as an emphasis should have been put on stimulating investment, economy, and jobs. To cushion the economic impact of the pandemic, the government introduced an economic stimulus plan at the start of April 2020. However, PNG shows a lack of social protection mechanisms.

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