AEIR 2018

Despite strong performances from cash crops, fishing revenues, and construction, economic growth slowed down to 3.2% in 2017 due to declining logging exports. Log output in 2017 decreased by roughly 2%, after a 2.69-million cubic meter high in the previous year. Meanwhile, upgrades for the Kukum Highway and the Mataniko Bridge led to a strong growth in the industry sector. Government spending also increased by 4.8%, leading to a significant increase in international scholarships for tertiary education. Outlook for 2018 and 2019 are moderate, with economic growth pegged at 3.2% in 2018, and 3.0% in 2019. Logging output remained strong in early 2018, but a sharp decline in logging output comes as a potential risk for 2019 as the current logging output is unsustainable, and could elicit environmental or governmental pressures to curb the logging activities.

Source: Asian Development Outlook Update 2018, ADB
Latest Month-Ago Year-Ago
Headline Inflation Rate 1 5.2 (Feb18)3.5 -2.1
Merchandise Export Growth 1 -29.4 (Dec18)-29.4 -23.2
1 y-o-y, %.
Source: CEIC database.

Initiatives / FTAs