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

Papua New Guinea Economy

Economy - overview: Papua New Guinea is richly endowed with natural
resources, but exploitation has been hampered by the 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 72% of export
earnings. The 3.4% average annual growth rate of GDP during
1979-1998 conceals considerable year-to-year variation resulting
from external economic shocks, natural disasters, and economic
management problems. There has been little growth in the last half
of the 1990s, with real GDP in 1999 barely 3% higher than in 1994,
not enough to compensate for population growth. A new administration
under the leadership of Prime Minister Mekere MORAUTA in July 1999
has promised to restore integrity to state institutions, to
stabilize the kina, to restore stability to the national budget, to
privatize public enterprises where appropriate, and to ensure
ongoing peace on Bougainville. The government has had considerable
success in attracting international support, specifically gaining
the support of the IMF and the World Bank in securing development
assistance loans. Significant challenges remain for MORAUTA,
however, including gaining further investor confidence, specifically
for the proposed Papua New Guinea-Australia oil pipeline, continuing
efforts to privatize government assets, and in maintaining the
support from members of Parliament who after 15 July 2001 can
dismiss him with a vote of no-confidence.

GDP: purchasing power parity - $12.2 billion (2000 est.)

GDP - real growth rate: 2.9% (2000 est.)

GDP - per capita: purchasing power parity - $2,500 (2000 est.)

GDP - composition by sector: agriculture: 30%

industry: 35%

services: 35% (1999 est.)

Population below poverty line: 37%

Household income or consumption by percentage share: lowest 10%:
1.7%

highest 10%: 40.5% (1996)

Inflation rate (consumer prices): 17% (2000 est.)

Labor force: 1.941 million

Labor force - by occupation: agriculture 85%, industry NA%, services
NA%

Unemployment rate: NA%

Budget: revenues: $1.6 billion

expenditures: $1.9 billion, including capital expenditur