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. Following construction of a $19 billion liquefied natural gas (LNG) project, PNG LNG, a consortium led by ExxonMobil, began exporting liquefied natural gas to Asian markets in May 2014. The project was delivered on time and only slightly above budget. The success of the project has encouraged other companies to look at similar LNG projects. French supermajor Total is hopes to begin construction on the Papua LNG project by 2020. Due to lower global commodity prices, resource revenues of all types have fallen dramatically. PNG’s government has recently been forced to adjust spending levels downward.

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. In August, 2017, PNG launched its first-ever national trade policy, PNG Trade Policy 2017-2032. The policy goal is to maximize trade and investment by increasing exports, to reduce imports, and to increase foreign direct investment (FDI).

GDP (purchasing power parity):
$30.19 billion (2017 est.)
$29.44 billion (2016 est.)
$28.98 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 132
[see also: GDP country ranks ]

GDP (official exchange rate):
$19.82 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
2.5% (2017 est.)
1.6% (2016 est.)
5.3% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 131
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$3,700 (2017 est.)
$3,600 (2016 est.)
$3,700 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 184
[see also: GDP - per capita country ranks ]

Gross national saving:
36.8% of GDP (2017 est.)
38% of GDP (2016 est.)
33.7% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 14
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 43.7% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 19.7% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 10% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.4% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 49.3% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -22.3% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 22.1% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 42.9% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 35% (2017 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, livestock (pork, poultry, cattle), dairy products, spice products (turmeric, vanilla, ginger, cardamom, chili, pepper, citronella, and nutmeg), fisheries products

Industrial production growth rate:
3.3% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 97
[see also: Industrial production growth rate country ranks ]

Labor force:
3.681 million (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 97
[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
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
2.5% (2017 est.)
2.5% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 26
[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 (CIA rank, may be based on non-current data): 13
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 3.638 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 4.591 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
18.4% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 160
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-4.8% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 168
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
36.9% of GDP (2017 est.)
36.9% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 144
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
5.4% (2017 est.)
6.7% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 177
[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 (CIA rank, may be based on non-current data): 15
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
8.4% (31 December 2017 est.)
8.38% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 99
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$5.409 billion (31 December 2017 est.)
$5.05 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 99
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$5.409 billion (31 December 2017 est.)
$5.05 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 102
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$7.091 billion (31 December 2017 est.)
$7.223 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 119
[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 (CIA rank, may be based on non-current data): 74
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$4.859 billion (2017 est.)
$4.569 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 29
[see also: Current account balance country ranks ]

Exports:
$8.522 billion (2017 est.)
$9.224 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 95
[see also: Exports country ranks ]

Exports - partners:
Australia 18.9%, Singapore 17.5%, Japan 13.8%, China 12.7%, Philippines 4.7%, Netherlands 4.2%, India 4.2% (2017)

Exports - commodities:
liquefied natural gas, oil, gold, copper ore, nickel, cobalt logs, palm oil, coffee, cocoa, copra, spice (turmeric, vanilla, ginger, and cardamom), crayfish, prawns, tuna, sea cucumber

Imports:
$1.876 billion (2017 est.)
$2.077 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 170
[see also: Imports country ranks ]

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

Imports - partners:
Australia 30.1%, China 17.3%, Singapore 10.2%, Malaysia 8.2%, Indonesia 4% (2017)

Reserves of foreign exchange and gold:
$1.735 billion (31 December 2017 est.)
$1.656 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 123
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$17.94 billion (31 December 2017 est.)
$18.28 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 95
[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 -
3.179 (2017 est.)
3.133 (2016 est.)
3.133 (2015 est.)
2.7684 (2014 est.)
2.4614 (2013 est.)