INFLATION IMPACT HIGHLIGHTED AS REAL GDP STAGNATES

By Nigel MADO

Rising inflation and stagnant real GDP are impacting the purchasing power of Papua New Guineans, according to East Sepik Governor Allan Bird.

Speaking on the Nasfund FM100 Talkback Show, Bird discussed how nominal GDP growth, which measures the economy’s size at current prices, contrasts with real GDP growth, which accounts for inflation. He noted that while nominal GDP has risen in recent years, real GDP has remained largely stagnant.

“Inflation is eroding the purchasing power of our people, and this is reflected in the stagnant real GDP figures,” Bird said.

He said rising prices are being felt by households nationwide.

Recently the National Statistical Office (NSO) released data comparing nominal & real GDP for Papua New Guinea, offering new insights into the country’s economic performance.

East Sepik Governor Allan Bird welcomed the publication, saying it provides clarity on economic trends.

Bird noted that while nominal GDP, projected at 110 billion kina showing growth, real GDP, remains stagnant.

Bird said this is the first time to have this data publicly available adding that it allows the people to better understand the distinction between nominal and real GDP.

The Governor said the release of this data is seen as a step towards transparency. Enabling economists and the public to assess the economy’s true performance and its implications for policy-making.