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 Papua New Guinea
Economy - overview:
Papua New Guinea is richly endowed with natural resources, but
exploitation has been hampered by 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 nearly two-thirds of export
earnings. The economy has improved over the past three years because
of high commodity prices following a prolonged period of
instability. The government of Prime Minister SOMARE has expended
much of its energy remaining in power and should be the first
government in decades to serve a full five-year term. The government
has also brought stability to the national budget thus far, largely
through expenditure control. Numerous challenges still face the
government including regaining investor confidence, restoring
integrity to state institutions, promoting economic efficiency by
privatizing moribund state institutions, and balancing relations
with Australia, the former colonial ruler. Other socio-cultural
challenges include the HIV/Aids epidemic, law and order, and land
tenure issues. Australia annually supplies $240 million in aid,
which accounts for nearly 20% of the national budget.
GDP (purchasing power parity):
$14.37 billion (2005 est.)
GDP (official exchange rate):
$3.924 billion (2005 est.)
GDP - real growth rate:
3% (2005 est.)
GDP - per capita (PPP):
$2,600 (2005 est.)
GDP - composition by sector: agriculture: 35.3% industry: 38.1% services: 26.6% (2005 est.)
Labor force: 2.413 million (2004)
Labor force - by occupation: agriculture: 85% industry: NA% services: NA%