PORT MORESBY, May 2, 2024 – Papua New Guinea’s economy is forecast to accelerate in 2024 after a slowdown last year, yet greater investment in education is critical to the country’s longer-term economic future, a World Bank report released on Thursday says.
According to the World Bank's Papua New Guinea Economic Update: Invest in Your Children report, the economic growth in Papua New Guinea is projected to rise to 4.8% this year from 2.7% in 2023 after the reopening of the Porgera gold mine. However, growth is expected to remain below its pre-pandemic trajectory.
World Bank Senior Economist for Papua New Guinea, Ruslan Piontkivsky, highlighted that the economy is on a path of recovery, stating, "Meanwhile, macroeconomic policies have improved with the government carrying out fiscal consolidation plans to reduce risks of debt distress and the Bank of PNG allowing more exchange rate flexibility. This should continue so the results are seen."
The report also emphasized the need for greater investment in education to ensure sustainable and lasting growth for Papua New Guinea. World Bank Lead Economist for Education in the Pacific, Lars M. Sondergaard, emphasized the importance of human capital, stating, "Papua New Guinea’s most important asset is its people – and improved teaching quality and education investment could turn Papua New Guinea’s young population into an engine of growth."
Sondergaard stressed the urgency for change in the education sector to provide young people with the best opportunities for building a strong future and contributing to their country. The report highlighted challenges in the education system, including a high percentage of children unable to read and understand age-appropriate texts, as well as low rates of completion of secondary or tertiary education among young adults.
To address these challenges and improve educational outcomes, the report called for a focus on early education, investments in primary and maternal healthcare, and enhancements in teaching quality and learning materials. Upgrading education legislation, policy, and practices were also identified as essential steps to drive positive changes in the education sector.