ECONOMY PROJECTED TO GROW BY 4.7% NEXT YEAR

By NIGEL MADO

THE country’s economy is on a growth trajectory, with a projected GDP increase of 4.7% for 2025.

This was the assertion made by Treasury Secretary, Andrew Oeake. Oaeke attributed this to multiple factors, including an uptick in construction, government-led capital expenditure, and the strengthening of the non-resource sector.

The non-resource sector, comprising agriculture, manufacturing, and small-scale enterprises, has been identified as critical for medium-term growth.

The government’s stimulus measures aim to bolster this sector to achieve a 5% growth rate, a significant milestone that aligns with its broader economic diversification strategy.

“The non-resource sector is where most of our people are directly impacted, and its growth will resonate deeply across households,” Oaeke said.

With inflation forecasted at 4.5% for 2025, the government is introducing relief measures to ease the cost of living for Papua New Guinean households.

Among these measures is the exemption of GST on essential goods, which aims to reduce the financial burden on families.

In addition, the threshold for first-time homebuyers has been raised to K700,000, providing young families with greater access to housing opportunities.

These measures form part of a broader K115 million relief package.

Oaeke stated that this is about providing tangible support to households as we navigate the economic challenges ahead.