PNG economy maturing

By MATTHEW VARI

Sunday, November 15, 2015 (Sunday Chronicle, PNG)

THAT was the observation by economist and BSP Capital Managing Director Richard Baryslewicz in reference to the current economic climate in the country when commenting on the slowing down of the PNG economy and its eventual plateau levels predicted by government post 2015 between 4.3% and 3%.

He said the current economic climate in the country is the beginning of a maturing phase that is healthy for PNG.

“I think step one for investors looking at PNG that basic health check is very solid. Secondly I think there has been perhaps too much excitement around growth numbers and how they have fallen,” Baryslewicz said.

“Let me say as an economist, that we have actually returned to more normal numbers volatile numbers that have been good of late and that in some people’s minds has become a new norm.”

“It is actually not a new norm- we have actually gone a full circle to a norm where you’ve got more rationale more reasonable, more sustainable growth numbers which are healthy.”

He said those numbers were healthy to not create runaway inflation, distortions in capital markets, and distortions within supply and demand that runaway and rampant growth can have.

“So I think we are looking at PNG right now it is the beginning of some kind of a maturing phase that is healthy for PNG.”

“We have got the benefit of an Exxon project US$19 billion project that was delivered on budget and on time by a major global energy player, it says something.”

“It also says something about a second LNG project in the work by the consortium Total and its partners InterOil and Oil Search in the early phases of something that is equally large.”

He said talk of Papua New Guinea has shifted from the historical focus on its exports to its new status as an energy exporter and will be for the perceptive future.

Sentiments shared by Editorial Director for Oxford Business Group Marco Venditti who pointed out that opportunities still remain despite the dooms of the past year.

“I think it is in the process of maturing. I have been here for three years and I have seen changes that would have taken 20 years in Europe. In PNG everything is possible it is the land of opportunities.”

“This country is moving so fast and perhaps it is very difficult to notice it from within but when you coming from abroad you do see how fast this country is moving.”

He, however, also emphasized that unfortunately not everyone were benefiting at the same time.

“Distribution of wealth is the main stumbling block. It is the main issue the main task. Papua New Guinea is not only Port Moresby, I have been travelling extensively in this country and I know what the average person struggle with daily life means in PNG,” Venditti said.

“PNG is not just shiny buildings and new freeways. It is a much more complex story than that. But there is nobody to blame it is the history of PNG which is a very peculiar country.”