Prime Minister, James Marape has highlighted the strong growth trajectory of Papua New Guinea’s economy over the past two decades, emphasising that sustained political stability has been the critical factor enabling the country to move towards a stronger and more prosperous economic future.
Speaking on the nation’s economic progress, Prime Minister Marape pointed to recent economic data showing that Papua New Guinea’s nominal Gross Domestic Product (GDP) is now expected to exceed K130 billion, marking one of the most significant periods of economic expansion since Independence.
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Economic records indicate that between 1975 and 2002, Papua New Guinea experienced very slow economic growth, averaging around 0.3 percent annually.
During that first 27 years after Independence, the country experienced frequent political changes, with six prime ministers and 13 different governments formed over the period.
On average, governments lasted just two years and four months, resulting in policy disruptions and limited long-term economic continuity.
Prime Minister Marape said this period of instability had a direct impact on economic growth and national development.
“History shows clearly that political instability slowed our economic progress in the early decades of our nationhood,” Prime Minister Marape said.
“When governments change too frequently, policies are interrupted, development plans are delayed, and investor confidence is weakened. Stability is essential for economic growth.”
The Prime Minister noted that the period from 2002 to 2025 has been markedly different. During this time, Papua New Guinea has seen only three prime ministers, with governments lasting an average of eight years and six months, allowing for longer-term policy implementation and economic planning.
During this period of relative stability, six governments were formed following national elections and constitutional processes in 2007, 2011, 2012, 2017, 2019 and 2022, allowing the country to maintain continuity in economic policy and national development strategies.
Prime Minister Marape said the economic data clearly demonstrates that PNG’s strongest economic expansion has occurred during these past two decades of improved political stability.
“Our economy has grown significantly over the last twenty years, and the data confirms that stability in government creates the environment needed for sustained development,” he said.
“The lesson for our nation is clear: when our leaders work together to maintain political stability, our economy grows and our people benefit.”
According to national economic estimates from the Department of Treasury and the National Statistical Office, Papua New Guinea’s GDP has now risen to more than K130 billion, driven by growth across both the resource sector and the expanding non-resource economy, including agriculture, fisheries, small business, construction and services.
Prime Minister Marape said his government is determined to continue this positive trajectory and has set a clear long-term goal of expanding the economy to more than K200 billion in the coming years.
“Our vision is to grow Papua New Guinea’s economy beyond K200 billion while building a national budget exceeding K50 billion, which will allow government to invest more strongly in infrastructure, education, health services and economic empowerment for our people,” Prime Minister Marape said.
“This is not just about numbers. It is about creating a sustainable economy that delivers real opportunities and prosperity for our citizens.”
Prime Minister Marape also stressed that economic growth must be accompanied by improvements in governance, transparency and law and order.
“For our economy to reach its full potential, we must eliminate corruption, reduce lawlessness, and remove nepotism from our systems. These are not just political issues; they are economic issues that affect investment, productivity and national confidence,” he said.
The Prime Minister said his government continues to implement reforms aimed at strengthening institutions, improving fiscal discipline, and ensuring that national resources are managed responsibly for the benefit of all Papua New Guineans.
Since taking office in 2019, the Marape-Rosso Government has focused on stabilizing the economy through responsible budgeting, improving debt management, strengthening revenue collection, and positioning the country to benefit from major resource projects including Papua LNG and other future energy developments, while also prioritizing agriculture, fisheries, tourism and small business growth.
“Our government inherited a number of global and domestic challenges, including the COVID-19 pandemic and global economic pressures, yet we have continued to steer the country forward with responsible economic management,” Prime Minister Marape said.
“What we are building today is a stronger economic foundation for the next generation of Papua New Guineans.”
Prime Minister Marape called on all leaders, institutions and citizens to work together to maintain the stability that has allowed the country’s economy to grow.
“Political stability must be protected because it is the platform upon which economic progress stands,” he said.
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“If we maintain stability, strengthen governance, and remain disciplined in our development plans, Papua New Guinea will continue moving towards a prosperous future for our people.”