Papua New Guinea’s (PNG) per capita income lags most of its Pacific Island peers. Low commodity prices, fiscal challenges and ongoing foreign-currency shortages continue to weigh on output and incomes, particularly in the non-mining sector. But indicators of the business climate, creditworthiness and growth are in line with, or slightly stronger, than regional peers. PNG’s natural resources wealth and continued support from bilateral and multilateral development partners bolsters prospects for strengthening in economic and financial conditions.
