(Last updated: 8 May 2011)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Papua New Guinea. This is regularly updated, and should be checked before planning travel.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

PNG has enjoyed steady economic growth in the past three years on the back of strong commodity prices.

There is strong growth in the building and construction sector, particularly evident in Port Moresby and Lae.

Both traditional and cash economies exist in Papua New Guinea (PNG). The traditional sector is mainly subsistence and semi-subsistence farming and supports about 85 per cent of the population. Most villages are self-sufficient and small surpluses of produce are traded.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

PNG gained independence from Australia on 16 September 1975. PNG has a parliamentary democracy with the Queen as its head of state. A governor-general represents the Queen. The head of the government is an elected prime minister whose appointment is confirmed by the governor-general.

The National Parliament consists of 109 members. There is a system of provincial, city and local governments. The National Executive Council (NEC) or Cabinet comprises the prime minister and usually about 27 ministers.

Trade relations and statistics

Papua New Guinea (PNG) is a member of the Melanesian Spearhead Group, a regional grouping of Pacific Island nations, which provides preferential tariff treatment and access for products produced by member countries. PNG is also a member of the Commonwealth.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.