BPNG survey confirms decline in business confidence

Porgera mine (File photo)

A survey conducted by the Bank of Papua New Guinea (BPNG) indicates a decline in business confidence in the country.

Bank of PNG Governor Elizabeth Genia revealed this recently when presenting the March 2024 BPNG Monetary Statement in Port Moresby.

“Bank of PNG business sentiment survey conducted in January 2024, indicate decline in business confidence [and] expected to [continue] in the coming months, lingering effect of January unrest.

The Central Bank had also made a projection of five percent jump on Consumer Price Index (CPI) for this year and increase unemployment will affect business revenue for this year. 

“Anticipated revenue for businesses will remain under pressure, consumers do not have the income that was available previously [to make purchase], and employment level of non-mineral private sector expected to decline.”      

But the head of the country’s central bank is optimistic, as the first quarter of 2024 curtain draws to an end. “For 2024, bank [BPNG] forecasting rebound in real GDP [Gross Domestic Product] growth by 3 percent, primarily driven by mineral sector, underpin by resumption of production at Porgera Mine,” Genia said.