Gross Domestic Products - National Account 2009 - 2016

OVERVIEW OF PAPUA NEW GUINEA ECONOMY

PNG Gross Domestic Product (GDP), 2009 to 2016
GDP at Current Prices

Current Price GDP for 2016 is 65,038 million Kina, this is an increase of 4,899 million Kina or 8.1% from 2015 Current Price GDP.

Key contributing industries were:
• 1,121 million Kina or 10.7 % increase in Agriculture, Forestry and Fishing
• 1,317 million Kina or 29.0 % increase in Other Mining
• 426 million Kina or 9.0 % increase in Construction
• 529 million Kina or 9.1 % increase in Wholesale and Retail
• 448 million Kina or 12.3 % increase in Real Estate Activities
• 388 million Kina or 9.0 % increase in Administrative and Support Services Activities 

The main offset to this positive contribution was the Extraction of Crude Petroleum and Natural Gas with a fall of 314 million Kina or -3.1%.

GDP at Constant Price
Constant Price GDP for 2016 is 61,742 million Kina, this is an increase of 2,419 million Kina or 4.1 % from 2015 Constant Price GDP.

Key contributing industries were:
• 245 million Kina or 2.7 % increase in Agriculture, Forestry and Fishing
• 859 million Kina or 6.7 % increase in Extraction of Crude Petroleum and Natural Gas
• 928 million Kina or 17.4 % increase in Other Mining

FIGURE 1. GDP LEVELS 2009 to 2016

F01


The Gross Domestic Product (GDP) in levels show a moderate increase in PNG’s economy from years 2009 to 2016 (See Figure 1). The GDP at Current Prices increased from 32.0 billion Kina in 2009 to 65.0 billion Kina in 2016, this is an increase of 33 billion Kina or an average annual growth of 10.8 % over the reporting period. Whereas GDP at Constant Prices increased by 22.3 billion Kina or an average growth of 6.7 %, from 39.4 billion Kina to 61.7 billion Kina, 2009 to 2016.

In 2013, the Current and Constant Price GDP figures are the same as the year 2013 is the base year for the calculation of Constant Price GDP estimates; thus, the Constant Price estimates are all in 2013 prices whereas the Current Price GDP is valued using the prices prevailing in the respective years.

FIGURE 2. PNG GDP GROWTH 2009 to 2016

F02

The Gross Domestic Product (GDP) in Current Price and Constant Price for PNG showed positive growth for all years (2009 to 2016). Despite the impact of the Global Financial Crisis in PNG’s economy in 2009, the Current Price GDP still showed positive growth (up 1.6%).

Current Price GDP growth is stronger than Constant Price GDP growth when prices are increasing. In the years 2009, 2012 and 2015, Constant Price GDP growth was stronger than Current Price GDP growth due to falling prices in the economy.

Current Price GDP in 2010 showed that the economy grew by 21.1 %, which is deemed to be the highest for this time period and was driven by the construction phase of the LNG project. Current Price GDP in 2014 showed that the economy grew by 19.7 % which was the result of the commencement of LNG production.

FIGURE 3. GDP PER CAPITA IN LEVELS, KINA, 2009 to 2016

F03

The level of GDP per capita has increased from 4,679 Kina in 2009 to 7,672 Kina in 2016 in Current Price GDP terms.

FIGURE 4. GDP PER CAPITA, PERCENTAGE (%), 2009 to 2016

F04

GDP per Capita level increased from 7,314 Kina in 2015 to 7,672 Kina in 2016, this equates to an average increase in GDP per Capita of 7.5 % per annum (in Current Prices). There was a decline in the GDP per Capita in 2009 (-1.5 %) which was an effect of the population (up 3.1%) growing faster than Current Price GDP (up 1.6%). However, in year 2010, PNG recorded its strongest GDP per Capita with an increase of 17.4 percent followed by 16.1% in 2014.

FIGURE 5. GVA GROWTH BY INSTITUTIONAL SECTORS, 2009 to 2016

F05

The graph above details the growth of four institutional sectors: Non-Financial Corporations, General Government, Financial Corporations and Households.

Non-Financial Corporations Sector recorded a growth of 7.9% in 2015 and 8.2% in 2016. The Non- Financial Sector highest recorded growth was 31.6% in 2010 due to strong growth in both Construction and Mining and Quarrying.

General Government Sector has shown moderate positive increases in time over the period (2009 to 2016). The strongest increase was 19.8 % in 2011.

The Financial Corporations Sector showed a decline in 2014 and 2015, due to new policies implemented by the Government to the commercial banks to restrict foreign exchange fees and explicit charges.

Household Sector has shown moderate positive increases in time over the period (2009 to 2016). However, 2015 reported a low increase of 3.7 % due to the impact of the drought.

FIGURE 6a. INSTITUTIONAL SECTOR SHARE, 2009 CURRENT PRICE

F06a

FIGURE 6b. INSTITUTIONAL SECTOR SHARE, 2016 CURRENT PRICE

F06b

Non-Financial Corporations Sector is the largest contributor in 2016 with a 57.5% share (Figure 6b). This is up from 52.0% share in 2009 (Figure 6a), the increase is due to growth in the Mining and Quarrying industry.

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