Gross National Product -

GNP of PNG
 Gross National Product
• GNP is an economic statistics which includes
Gross Domestic Product, plus any income
earned by the residents from investment
made overseas and income earned within
domestic economy by overseas residents.

• GNP = C + I + G + X + Income from abroad + Income

earned locally by overseas
residents.
• GNP = C + I + G + X + FDI (Foreign Direct Investment)
 Foreign Direct Investment

• FDI inflow
• FDI outflow

• GNP is a more thorough

measuring the growth of the
economy.
End of Year 2017, the GNP composition of PNG:

• Household consumption 49.4%

• Government consumption 7.8% 57.2%
• Investment in fixed capital 9.9%
• Investment in inventories 0.4% 10.3%
• Exports of goods & services 68.7%
• Imports of goods & services -36.2% 32.5%
• Total 100.00%
PNG economic growth rates
• 2010 7.7%
• 2011 10.7%
• 2012 8.1%
• 2013 5.5%
• 2014 13.3%
• 2015 9.9%
• 2016 2.6%????
 More macro information of PNG
• Inflation rate is 6.60%.
• Interest rate is 6.25%.
• Government debt to GDP is 35.8% 32.6%???
• Minimum wage is K140.
• Unemployment rate is 6.0% 2.50% - 3.10%???

• Australia unemployment is 3.98 – 11.2%

• USA unemployment is 2.50 – 10.8%
2 important policies that influence
PNG economy:
1. Fiscal policy determines PNG
government spending and tax rates.
2. Monetary policy manipulates the
money supply in an economy by
Central Bank.