AEIR 2021

GDP grew 4.8% in 2019, following a 0.8% contraction in 2018, largely due to rebounding petroleum and mineral production. The current account posted a significant surplus again in 2019, driven by increased liquefied natural gas and gold exports, as well as a rising gold price. But political maneuvering and the deferral of large investment projects affected sentiment. Gas production could fall in 2020 on reduced demand from the People’s Republic of China due to the COVID-19 pandemic. Inflation dropped to an estimated 3.6% in 2019, yet an overvalued kina and associated foreign exchange shortage continued to hold back economic activity. As the fiscal balance worsens, the government faces important challenges in managing public debt.

Source: Asian Development Outlook 2020, ADB
Latest Month-Ago Year-Ago
Headline Inflation Rate 1 2.9 (Dec19)4.8
Merchandise Export Growth 1 10.3 (Nov20)10.3 7.0
Exchange Rate Index 2 87.8 (Feb21)87.8 87.9
1 y-o-y, %.
2 Monthly average, January 2006 = 100, $/local currency.
Source: CEIC database.

Initiatives / FTAs