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Economy of Papua New Guinea

Papua New Guinea is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Papua New Guinea may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Papua New Guinea exports around $5.39 billion and imports roughly $4.59 billion. 2.7% of population in the country are unemployed. The total number of unemployed people in Papua New Guinea is 227,295. In Papua New Guinea, 37% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Papua New Guinea is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 7.7% of GDP. The Gini Index of the country is 50.9. Papua New Guinea is experiencing inequality. The gap between the richest and poorest citizens in this country is significant and obvious, resulting in a drastically different standard of living for rich and poor citizens. Papua New Guinea has a Human Development Index (HDI) of 0.491. Papua New Guinea has a lower medium HDI score. This indicates that the majority of citizens will struggle to attain a desirable life due to flawed economic and social systems. The Global Peace Index (GPI) for Papua New Guinea is 2.064. The strength of legal rights index for Papua New Guinea is 3. Overall, it is considered to be rather inadequate - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders to some degree; credit information may be sufficient, but hardly available, or, the oppoiste case, available but not sufficient.

Currency

The currency of Papua New Guinea is Papua New Guinean kina. The plural form of the word Papua New Guinean kina is kinas. The symbol used for this currency is K, and it is abbreviated as PGK. The Papua New Guinean kina is divided into Toea; there are 100 in one kina.

Credit rating

According to the S&P credit-rating agency, Papua New Guinea has a credit rating score of B+, and the prospects of this rating are stable. According to the Moody's credit-rating agency, Papua New Guinea has a credit rating score of B1, and the prospects of this rating are stable.

Central bank

In Papua New Guinea, the institution that manages the state's currency, money supply, and interest rates is called Bank of Papua New Guinea. The average deposit interest rate offered by local banks in Papua New Guinea is 0.3%.

Public debt

Papua New Guinea has a government debt of 16.2% of the country's Gross Domestic Product (GDP), as assessed in 2013.

Tax information

The corporate tax in Papua New Guinea is set at 30%. Personal income tax ranges from 22% to 42%, depending on your specific situation and income level. VAT in Papua New Guinea is 10%.

Finances

The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Papua New Guinea is $18595 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Papua New Guinea was last recorded at $2 million. PPP in Papua New Guinea is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Papua New Guinea is 15,420 billion. Based on this statistic, Papua New Guinea is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Papua New Guinea was last recorded at $2 million. The average citizen in Papua New Guinea has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Papua New Guinea averaged 5.8% in 2014. According to this percentage, Papua New Guinea is currently experiencing significant growth. Countries that are experiencing significant growth offer the best chance for a substantial return on investment, as GDP growth rate is the most important indicator of economic health. As GDP grows, business, jobs, and personal income grow as well. To read more about financial information click on finances of Papua New Guinea.

Industry

Major industries in the country are copra crushing, palm oil processing, plywood production, wood chip production, mining (gold, silver, copper), crude oil and petroleum products, construction, tourism. The total labor force of Papua New Guinea is 3,695,710 people, wherein 2.7% of population in the country are unemployed. The total number of unemployed people in Papua New Guinea is 227,295. The Industrial Production growth rate of Papua New Guinea is 10%.To read more about industrial information within Papua New Guinea click on industry of Papua New Guinea.

Agriculture

There are 2219 km2 of arable land in Papua New Guinea, and it comprises 0% of the country's total territory. There are 8559 km2 of cultivated land in Papua New Guinea. The country's major agricultural crops and products are coffee, cocoa, copra, palm kernels, tea, sugar, rubber, sweet potatoes, fruit, vegetables, vanilla, shell fish, poultry, pork.To read more about agriculture click on agriculture of Papua New Guinea.