Economy—overview: Papua New Guinea is richly endowed with natural resources but exploitation has been hampered by the rugged terrain and the high cost of developing an infrastructure. Agriculture provides a subsistence livelihood for the bulk of the population. Mineral deposits including oil copper and gold account for 72% of export earnings. Budgetary support from Australia and development aid under World Bank auspices have helped sustain the economy. In 1995 Port Moresby reached agreement with the IMF and World Bank on a structural adjustment program of which the first phase was successfully completed in 1996. Droughts caused by the El Nino weather pattern wreaked havoc on Papua New Guinea's coffee cocoa and coconut production the mainstays of the agricultural-based economy and major sources of export earnings. The coffee crop was slashed by up to 50% in 1997. Moreover droughts could bite into growth in 1998.
GDP: purchasing power parity—$11.6 billion (1996 est.)
GDP—real growth rate: 2.3% (1996 est.)
GDP—per capita: purchasing power parity—$2 650 (1996 est.)
Exports: total value: $2.5 billion (f.o.b. 1996) commodities: gold copper ore oil logs coffee palm oil cocoa lobster partners: Australia Japan Germany UK South Korea
Imports: total value: $1.7 billion (c.i.f. 1996) commodities: machinery and transport equipment manufactured goods food fuels chemicals partners: Australia US Singapore Japan UK
Debt—external: $3.2 billion (1995)
Economic aid: recipient: ODA $291 million (1993); $240 million bilateral aid from Australia (FY96/97 est.); $4.1 million ODA from NZ (FY95/96)
Currency: 1 kina (K) = 100 toea
Exchange rates: kina (K) per US$1—0.6299 (November 1997) 0.7588 (1996) 0.7835 (1995) 0.9950 (1994) 1.0221 (1993); note—the government floated the kina on 10 October 1994
