PNG's economic outlook shows positive signs, despite the current weakness of global commodity prices. Economists point to key advantages, as well as to challenges that will need to be overcome if the country is to reach its economic potential.
Oil and gas prices have been low over the past few years, which has resulted in lower-than-expected growth in PNG's economy. However, PNG still possesses numerous economic advantages that will lead to sustainable growth over the medium- to long-term. These advantages include low labour costs, abundant natural resources and proximity to growing markets in Asia.
As pointed out by RH Managing Director James Lau, during a recent interview with Business Advantage, RH continues to expand investment in PNG, despite current difficult business conditions.
"In 2016, we will focus on our existing projects and the planning phases of projects already in the pipeline. We expect some marginal growth in non-forestry sectors to continue for the next 12 to 18 months and hope for gradual improvements afterwards."