Westpac Group Economist shares economic outlook with PNG business leaders

Westpac Group Senior Economist Justin Smirk during his recent visit to PNG has shared insights on global and regional economic trends and their implications for PNG businesses and the broader economy.

He engaged with senior business leaders and customers, providing an analytical overview of global economic conditions, inflationary pressures, commodity markets and growth prospects for Papua New Guinea.

His discussions focused on helping businesses better understand the external forces shaping the operating environment and how PNG can position itself for sustainable growth.

During his attendance at the 100 CEOs Forum and the Lae Chamber of Commerce and Industry Breakfast, Mr. Smirk said Papua New Guinea remains well placed to benefit from long-term demand for its natural resources, while ongoing reforms and investment in key sectors will be critical to strengthening economic resilience.

He says PNG’s economic outlook continues to be influenced by global developments, particularly commodity prices, inflation and interest rate movements.

“Understanding these trends is important for businesses as they plan, invest and manage risk in a changing environment,”Mr. Smirk said.

Mr. Smirk also highlighted those ongoing geopolitical tensions in the Middle East, including the conflict between Iran and the United States, continue to affect global oil markets and contribute
to volatility in fuel prices.

As a net importer of refined fuel, Papua New Guinea is particularly exposed to these global price movements, with higher fuel costs flowing through to transport, logistics, electricity generation and the cost of goods across the economy.

Westpac PNG Chief Executive Andrew Cairns said the visit reinforced the bank’s commitment
to supporting informed decision-making across the PNG economy.

“At Westpac PNG, we are committed to connecting our customers and stakeholders with global
expertise that helps them navigate economic change,” Mr. Cairns said.

“Justin’s insights provide valuable context for businesses as they plan for the year ahead.” Mr. Cairns said.