Economy - overview:
Papua New Guinea (PNG) is richly endowed with natural resources, but exploitation has been hampered by rugged terrain, land tenure issues, and the high cost of developing infrastructure. The economy has a small formal sector, focused mainly on the export of those natural resources, and an informal sector, employing the majority of the population. Agriculture provides a subsistence livelihood for 85% of the people. The global financial crisis had little impact because of continued foreign demand for PNG's commodities.Mineral deposits, including copper, gold, and oil, account for nearly two-thirds of export earnings. Natural gas reserves amount to an estimated 155 billion cubic meters. A consortium led by a major American oil company is constructing a liquefied natural gas (LNG) production facility that began exporting in April 2014. As the largest investment project in the country's history, it has the potential to double GDP in the near-term and triple Papua New Guinea's export revenue. An American-owned firm also opened PNG's first oil refinery in 2004 and is building a second LNG production facility. The government faces the challenge of ensuring transparency and accountability for revenues flowing from this and other large LNG projects. In 2011 and 2012, the National Parliament passed legislation that created an offshore Sovereign Wealth Fund to manage government surpluses from mineral, oil, and natural gas projects. In recent years, the government has opened up markets in telecommunications and air transport, making both more affordable to the people.Numerous challenges still face the government of Peter O'NEILL, including providing physical security for foreign investors, regaining investor confidence, restoring integrity to state institutions, promoting economic efficiency by privatizing moribund state institutions, and maintaining good relations with Australia, its former colonial ruler. Other socio-cultural challenges could upend the economy including chronic law and order and land tenure issues.

GDP (purchasing power parity):
$28.02 billion (2016 est.) $27.33 billion (2015 est.) $25.63 billion (2014 est.)
note: data are in 2016 dollars
country comparison to the world: 135
[see also: GDP country ranks ]

GDP (official exchange rate):
$19.92 billion (2015 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
2.5% (2016 est.) 6.6% (2015 est.) 7.4% (2014 est.)
country comparison to the world: 118
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$3,500 (2016 est.) $3,500 (2015 est.) $3,400 (2014 est.)
note: data are in 2016 dollars
country comparison to the world: 184
[see also: GDP - per capita country ranks ]

Gross national saving:
38.1% of GDP (2016 est.) 24% of GDP (2015 est.) -11.7% of GDP (2014 est.)
country comparison to the world: 7
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 49.4%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 7.8%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 9.9%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.4%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 68.7%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -36.2% (2016 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 22.3%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 37.6%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 40.1% (2016 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
coffee, cocoa, copra, palm kernels, tea, sugar, rubber, sweet potatoes, fruit, vegetables, vanilla; poultry, pork; shellfish

Industries:
copra crushing, palm oil processing, plywood production, wood chip production; mining (gold, silver, copper); crude oil and petroleum products; construction, tourism

Industrial production growth rate:
4.8% (2016 est.)
country comparison to the world: 39
[see also: Industrial production growth rate country ranks ]

Labor force:
4.365 million (2016 est.)
country comparison to the world: 91
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 85%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: NA%
[see also: Labor force - by occupation - industry country ranks ]
services: NA% (2005 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
1.9% (2008 est.) 1.6% (2004)
country comparison to the world: 10
[see also: Unemployment rate country ranks ]

Population below poverty line:
37% (2002 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 1.7%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 40.5% (1996)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
50.9 (1996)
country comparison to the world: 17
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $3.169 billion
[see also: Budget revenues country ranks ]
expenditures: $4.295 billion (2016 est.)
[see also: Budget expenditures country ranks ]

Taxes and other revenues:
15.9% of GDP (2016 est.)
country comparison to the world: 180
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-5.7% of GDP (2016 est.)
country comparison to the world: 172
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
39.4% of GDP (2016 est.) 36.9% of GDP (2015 est.)
country comparison to the world: 120
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
6.3% (2016 est.) 6% (2015 est.)
country comparison to the world: 182
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
14% (31 December 2010) 6.92% (31 December 2009)
country comparison to the world: 14
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
8.3% (31 December 2016 est.) 8.73% (31 December 2015 est.)
country comparison to the world: 102
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$5.282 billion (31 December 2016 est.) $4.936 billion (31 December 2015 est.)
country comparison to the world: 97
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$8.085 billion (31 December 2014 est.) $7.477 billion (31 December 2013 est.)
country comparison to the world: 114
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$6.36 billion (31 December 2016 est.) $6.118 billion (31 December 2015 est.)
country comparison to the world: 116
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$10.71 billion (31 December 2012 est.) $8.999 billion (31 December 2011 est.) $9.742 billion (31 December 2010 est.)
country comparison to the world: 74
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$1.484 billion (2016 est.) $2.134 billion (2015 est.)
country comparison to the world: 32
[see also: Current account balance country ranks ]

Exports:
$7.886 billion (2016 est.) $8.377 billion (2015 est.)
country comparison to the world: 96
[see also: Exports country ranks ]

Exports - commodities:
oil, gold, copper ore, logs, palm oil, coffee, cocoa, crayfish, prawns

Exports - partners:
Japan 17.4%, Australia 15.9%, China 12.1% (2015)

Imports:
$1.83 billion (2016 est.) $2.267 billion (2015 est.)
country comparison to the world: 165
[see also: Imports country ranks ]

Imports - commodities:
machinery and transport equipment, manufactured goods, food, fuels, chemicals

Imports - partners:
Australia 25.9%, China 20%, Singapore 12.6%, Malaysia 7.2%, US 4.2%, Indonesia 4.1%, South Korea 4% (2015)

Reserves of foreign exchange and gold:
$1.629 billion (31 December 2016 est.) $1.738 billion (31 December 2015 est.)
country comparison to the world: 121
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$22.04 billion (31 December 2016 est.) $20.41 billion (31 December 2015 est.)
country comparison to the world: 86
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$NA
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$NA
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
kina (PGK) per US dollar - 3.156 (2016 est.) 2.7684 (2015 est.) 2.7684 (2014 est.) 2.4614 (2013 est.) 2.08 (2012 est.)