Papua New Guinea's economy is on track for its strongest growth in a decade, driven by record foreign direct investment in the resources and infrastructure sectors, according to the latest report from the Bank of Papua New Guinea.
The central bank's quarterly monetary policy statement revealed GDP growth of 4.8% in the first half of 2026, significantly above the government's initial forecast of 3.2%. The surge has been attributed to increased activity in the LNG sector, a rebound in agricultural exports, and a wave of new infrastructure projects funded through bilateral agreements with regional partners.
Key Drivers of Growth
The mining and petroleum sector contributed the largest share of growth, accounting for 2.1 percentage points of the overall expansion. The Papua LNG project, now in its final construction phase, has attracted over K8 billion in new capital expenditure this year alone.
Agriculture — long the backbone of PNG's rural economy — also posted strong numbers, with coffee, cocoa, and palm oil exports all exceeding year-earlier volumes. The kina's relative stability against the US dollar has helped exporters maintain competitive margins.
Finance Minister William Duma welcomed the figures, saying the results validated the government's economic reform agenda. "We are seeing the fruits of disciplined fiscal management and strategic investment in our productive sectors," he told reporters in Port Moresby.
