Agriculture ‘engine room’ of PNG’s economy: BSP Report

Agriculture is the largest employer in Papua New Guinea and accounts for approximately a third of the country’s gross domestic product.

Bank South Pacific [BSP] Quarterly Pacific Economic and Market Plus Report described agriculture as the ‘engine room’ of the country’s economy due to its substantial role in driving growth and generating employment opportunities.

BSP Group General Manager Corporate, Peter Beswick, while giving an insight into the Market Plus Report, said “The rising commodity prices present extensive opportunities across various sectors, highlighting agriculture’s potential to fortify economic stability and support national development.

He added that the rising commodity prices also offer extensive opportunities beyond cocoa, underscoring the sector’s potential to enhance economic stability and support national developments.

The report states that cocoa prices in PNG surged to an average of K2,500 per bag in the second quarter of this year before retreating to K1,700 per bag by the end of the same quarter.

The report from the largest retail bank in the country confirmed that the agriculture exports also contributed to foreign currency inflow by an 18.3 percent increase, reaching K5.4 billion.

BSP in supporting that drive in the agriculture sector, recently collaborated with New Britain Palm Oil, launching the Hargy Cashless Payment Eco-System campaign which resulted in the establishment of 7, 000 farmers account in the West New Britain Province.

“This signifies significant strides in empowering local farmers and advancing financial inclusion. This initiative strengthens the agriculture sector and reinforces PNG’s economic reliance,” Mr Beswick said.

Ends…CY