loi m bakani : recent review of papua new guinea ’ s economy speech by mr loi m bakani, governor of the bank of papua new guinea, to the international education agency ( iea ) college of tafe port moresby graduation, port moresby, 19 february 2016. * * * acknowledgement – executives of the international education agency, board of directors, staff, invited guests, parents and guardians and students, and graduands of the 15th graduation ceremony. let me first of all thank the iea for the invitation to be the key note speaker at today ’ s important occasion marking another stage in the graduands ’ educational life. you graduands will be entering the workforce or pursuing further education at an exciting time in our young country ’ s history that is experiencing rapid changes. you only have to look around port moresby and the rest of the country to see the transformation change that is taking place. papua new guinea as a nation has grown and transformed into a modern, sophisticated economy. this year, 2016, marks the fourteenth year of continuous economic growth as measured by growth in real gross domestic product ( gdp ), the longest streak of growth since independence in 1975. the construction of the us $ 19 billion png lng project has transformed the png economy, with spin - off benefits into other sectors and place png on the world map as a suitable investment destination that can host world - class multi - billion dollar projects. as a small, open and developing economy, our economic fortunes are intertwined with developments happening elsewhere around the globe. with the subdued global economic growth, volatility in international financial markets and geo - political uncertainties, international prices for our major export commodities remain low. the slowdown in china has also affected global growth. let me briefly outline the current state of the economy, as reflected in the main economic indicators. economic activity – growth in real gdp is expected to slow down in 2016 reflecting lower international commodity prices, including oil, and the adverse effects of the el nino weather phenomenon. this resulted in lower export receipts and government revenues. employment – according to the bank ’ s private sector employment index, over the year to september 2015, the total level of employment declined by 2. 6 percent, while excluding the mineral sector, it declined by 2. 8 percent. the decline reflected the slowdown in economic activity. balance of payments ( bop ) – preliminary balance of payments data for the eleven months to

in life with all the pressures that come with it. you have acquired a technical skill here that has prepared you well for a working career in a competitive job market. png is posed to experience continuous economic growth and no doubt you will all play your part in our country ’ s development. but also make the effort to invest in your financial education to enjoy the fruits of your labour. you deserve that – for you as well as for your family. in concluding, i wish you all every success in your career opportunities and best wishes for a rewarding career and a safe financial future. thank you for the invitation to speak and god bless you all. bis central bankers ’ speeches