Papua New Guinea’s gross domestic product is said to hit record high in 2015 according to Asian Development Bank estimates.

The bank however notes that the growth will have only limited immediate impact on the broader economy and job creation.

 “As international investors own some 80% of the LNG project, it is likely that most earnings will remain offshore.

“And, as the project comes on stream, employment in the project will drop dramatically, from a peak of about 16,000 workers during construction to a few hundred once the project is fully operational.

“As a result, the project will have much less impact on gross national income than on GDP. The project’s key transmission mechanism to the domestic economy will be dividend and tax payments to the national government, which are expected to peak in the early 2020s.

“During the initial years of production, some of these revenues will likely be required to service loans that fund the state’s equity holding in the project. They may also be used for investment in further resource development” the bank states

 

 

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