PNG's economy suffers worse than expected downturn

A faster than expected slowdown in the mining and petroleum sectors has worsened Papua New Guinea's budget performance for 2002.

PNG Treasurer, Bart Philemon, says early figures for 2002 show the overall economy shrank by 2.7 per cent, compared with November's 2003 budget forecast of a 0.5 per cent decline.

Mr Philemon says contraction in the mining and petroleum sectors was significantly worse than forecast because of a natural decline in reserves.

He says production was also cut by drought and social unrest in mining regions.


17/03/2003 17:21:43 | ABC Radio Australia News