Flag description: divided diagonally from upper hoist-side corner; the upper triangle is red with a soaring yellow bird of paradise centered; the lower triangle is black with five white five-pointed stars of the Southern Cross constellation centered
Economy
Economy - overview: Papua New Guinea is richly endowed with natural resources, but exploitation has been hampered by the rugged terrain and the high cost of developing an infrastructure. Agriculture provides a subsistence livelihood for the bulk of the population. Mineral deposits, including oil, copper, and gold, account for 72% of export earnings. Budgetary support from Australia and development aid under World Bank auspices have helped sustain the economy. In 1995, Port Moresby reached agreement with the IMF and World Bank on a structural adjustment program, of which the first phase was successfully completed in 1996. A second phase structural adjustment loan will be negotiated in 1997. The structural adjustment program includes liberalization of trade and investment policies, sustainable development of the forestry sector, improvement of government planning capacity and better delivery of public services. New gold and oil projects are under development and planned to begin production in 1997 and 1998 respectively.
GDP: purchasing power parity - $10.7 billion (1996 est.)
GDP - real growth rate: 2.3% (1996 est.)
GDP - per capita: purchasing power parity - $2,400 (1996 est.)
GDP - composition by sector: agriculture : 27% industry: 42% services: 31%
Inflation rate - consumer price index: 6% (1996 est.)
Labor force: total: 1.941 million by occupation: agriculture 64% (1993 est.)
Unemployment rate: NA%