Prime Minister Hon. James Marape has reaffirmed that Papua New Guinea’s economy is growing steadily and is not in crisis, pointing to clear national data showing sustained expansion over recent years.

Citing official figures from the National Statistical Office and Department of Treasury, Prime Minister Marape said the country’s nominal Gross Domestic Product (GDP) has increased from approximately K79 billion in 2018 to over K122 billion in 2024, with projections indicating growth towards K148 billion by 2026.

“This is not an economy in decline. This is an economy that has grown consistently and is now worth well over K120 billion,” Prime Minister Marape said.

“These are facts backed by data, not political opinion.”

The Prime Minister emphasised that much of this growth has been driven by the non-resource sector, which has expanded significantly from around K57 billion in 2018 to more than K89 billion in 2024, and is projected to exceed K107 billion by 2026.

“PNG is not just a mining and petroleum economy,” he said.

“Our agriculture, fisheries, forestry, tourism, manufacturing, construction, and small business sectors are driving real and sustained growth across the country.”

Prime Minister Marape said the resource sector, while still important, has remained relatively stable, growing from approximately K22 billion in 2018 to around K35 billion in recent years, demonstrating that the broader economy has become more diversified and resilient.

“This is exactly the direction we intended when we took office in 2019,” he said.

“We wanted to grow a broader-based economy that is not overly dependent on a single sector.”

The Prime Minister rejected claims from critics that Papua New Guinea is facing economic collapse, describing such statements as misleading and politically motivated.

“In 2020, when we made tough decisions on our resource sector such as the Porgera Mine closure, there were predictions that PNG would collapse, that we would become a failed state,” he said. “But today, the data tells a completely different story. The economy has grown, the base has widened, and resilience has improved.”

Addressing concerns about major resource projects such as Papua LNG, Prime Minister Marape said the country’s growth trajectory demonstrates that Papua New Guinea does not rely solely on one project for economic stability.

“The growth we are seeing today has taken place even without Papua LNG and during periods when Porgera was not operating,” he said.

“That alone should give confidence to our people that this economy is stronger and more self-sustaining than some would suggest.”

Prime Minister Marape reaffirmed the Government’s support for major investments including Papua LNG, Wafi- Golpu, Pasca, Frieda River, and other resource projects, but stressed that agreements must deliver fair and long-term benefits to the country.

“We will not rush into agreements that do not serve the best interests of our people,” he said.

“Our focus is not just growth, but quality growth that benefits Papua New Guineans.”

On fiscal management, the Prime Minister said the Government continues to pursue responsible policies aimed at stabilising debt, managing inflation, and supporting households.

He emphasised that alongside economic growth, the Government is firmly committed to reducing the national debt burden and restoring fiscal sustainability.

“We are now on a clear pathway of debt reduction,” Prime Minister Marape said. “By next year, we aim to cease new borrowing altogether, and from that point onward, we will continue repaying our existing loans, with a target to fully repay all outstanding debt by 2033.”

He pointed to recent measures including tax relief for low-income earners and the removal of GST on essential goods, as well as ongoing efforts to cushion the impact of global fuel price volatility.

“We are conscious of the pressures our people face, and we are taking practical steps to ease that burden,” he said.

Prime Minister Marape concluded by urging Papua New Guineans to remain confident and focused on contributing to the country’s growth.

“Our economy is growing. Our foundation is strengthening. Our future remains bright,” he said.

“Let us not be distracted by fear. Let us continue to work together to build a stronger Papua New Guinea for the next generation.”