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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
Papua New Guinea 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 infrastructure. Agriculture provides a subsistence livelihood for 85% of the population. Mineral deposits, including oil, copper, and gold, account for 72% of export earnings. The 3.4% average annual growth rate of GDP during 1979-1998 conceals considerable year-to-year variation resulting from external economic shocks, natural disasters, and economic management problems. There has been little growth in the last half of the 1990s, with real GDP in 1999 barely 3% higher than in 1994, not enough to compensate for population growth. A new administration under the leadership of Prime Minister Mekere MORAUTA in July 1999 has promised to restore integrity to state institutions, to stabilize the kina, to restore stability to the national budget, to privatize public enterprises where appropriate, and to ensure ongoing peace on Bougainville. The government has had considerable success in attracting international support, specifically gaining the support of the IMF and the World Bank in securing development assistance loans. Significant challenges remain for MORAUTA, however, including gaining further investor confidence, specifically for the proposed Papua New Guinea-Australia oil pipeline, continuing efforts to privatize government assets, and in maintaining the support from members of Parliament who after 15 July 2001 can dismiss him with a vote of no-confidence.
GDP: purchasing power parity - $12.2 billion (2000 est.)
GDP - real growth rate: 2.9% (2000 est.)
GDP - per capita: purchasing power parity - $2,500 (2000 est.)
GDP - composition by sector: agriculture: 30%
industry: 35%
services: 35% (1999 est.)