Treasurer expects 9.3% in growth

By JEFFREY ELAPA

TREASURY Minister Don Polye expects the country's growth rate this year to be around 9.3%, compared to 8% last year, The National reports.
He said amid the uncertain global economic depression, the country had experienced an uninterrupted, strong and vibrant domestic economic growth driven by higher levels of economic activity in the non-mining and the construction sector of the LNG project.
Polye said the supplementary budget was the result of this unprecedented economic growth which was being shared among the people of PNG through projects targeting the rural areas.
He said major exports continued to grow and the prices of mineral exports of gold and copper rose by 25% and oil by 20%, which was above the 2010 budget forecast.
They were expected to remain high.
However, he said annual inflation was forecast to be 9% in 2011, an upward revision from 8.2%.
This was due to the high level of economic growth, a continued shortage of skilled labour and land which pushed up wages and rental prices, and higher food and fuel prices from high global demand.
Polye said the domestic outlook was positive but not without risk.
The theme of the K781.8 million 2011 Supplementary Budget handed down in parliament is "sharing the benefits of economic growth with the people".
He said the government would improve the rural economy by ensuring funding was allocated to the right areas.
He said providing funding was as critical as implementing projects and delivering services.