Answer to Question #119220 in Macroeconomics for Bafino Bikai Noor

Question

Do you think that the PNG economy should aim to grow more quickly? Justify your answer.

Answer 1

Papua new Guinea should aim to grow more quickly because its population is is young and growing. PNG’s growth trajectory and abundant resource potential provides a strong platform for greater economic engagement with Asia and further abroad.

In addition to that ,the country’s economy is dominated by two broad sectors:

• the agricultural, forestry, and fishing sectors that engage most of PNG’s labor force (the majority informally); and
• the minerals and energy extraction sector that accounts for the majority of export earnings and GDP.