The 2018 PNG National Accounts released today (11th, November, 2020) shows that the size of the economy has reached K79.4 billion in current price terms, reflecting a 9.5% increase from 2017. Current price GDP measures PNG economic production valued at the prices for the particular year, meaning that changing quantities and changing prices have contributed to the growth in current price GDP.
The K6.9 billion increase in current price GDP was driven by Mining and Quarrying (up K2.7 billion), Administrative and Support Services (up K0.9 billion), Agriculture, Forestry and Fishing (up K0.7 billion) and Wholesale and Retail Trade (up K0.5 billion).
The release shows that the size of the economy has grown from K31.5 billion in 2008 to K79.4 billion in 2018 in current price terms, reflecting a 152.0% increase over the 10-year period. The K47.9 billion increase over this period was driven by Mining and Quarrying (up K14.2 billion), Agriculture, Forestry and Fishing (up K7.1 billion), Administrative and Support Service Activities (up K3.9 billion) and Wholesale and Retail Trade (up K3.7 billion).
In constant price terms, the size of the economy has reached K62.9 billion, reflecting a 0.3% decrease from 2017. This represents a decrease in the quantity of goods and services produced by the PNG economy from 2017 to 2018. Constant price GDP measures PNG production whilst holding prices constant, meaning that constant price GDP is only impacted by changing production quantities.
The key driver for the decrease in constant price GDP was Mining and Quarrying down K1.9 billion, due mainly to a fall in the volume of crude petroleum and natural gas extracted.
The gross value added (GVA) is also calculated in this release that provides sector performance. It provides a Kina value for the amount of goods and services that have been produced in the country, minus the cost of all inputs and raw materials that are directly attributable to that production. GVA can also be used to see how much value is added (or lost) from a particular sector.
GDP Core team
Photo credit: Jonathan Siniva, NSO ICT
