© 2025 The World Bank1818 H Street NW, Washington DC 20433Telephone: 202-473-1000; Internet: www.worldbank.orgSome rights reserved.This work is a product of The World Bank. The findings, interpretations, and conclusions expressedin this work do not necessarily reflect the views of the Executive Directors of The World Bank or thegovernments they represent.The World Bank does not guarantee the accuracy, completeness, or currency of the data includedin this work and does not assume responsibility for any errors, omissions, or discrepancies inthe information, or liability with respect to the use of or failure to use the information, methods,processes, or conclusions set forth. The boundaries, colors, denominations, links/footnotes andother information shown in this work do not imply any judgment on the part of The World Bankconcerning the legal status of any territory or the endorsement or acceptance of such boundaries.The citation of works authored by others does not mean The World Bank endorses the viewsexpressed by those authors or the content of their works.Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of theprivileges and immunities of The World Bank, all of which are specifically reserved.Rights and PermissionsThe material in this work is subject to copyright. Because The World Bank encourages disseminationof its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes aslong as full attribution to this work is given.Attribution—Please cite the work as follows: “World Bank. 2025. Papua New Guinea EconomicUpdate: Macroeconomic Stability and Growth: Unlocking the Potential of Agriculture © World Bank.”Any queries on rights and licenses, including subsidiary rights, should be addressed to World BankPublications, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail:pubrights@worldbank.org.Cover photo: © Gedi MalumCover design: The Greenhouse Studio. Preface and AcknowledgmentsThis publication is the tenth in the ongoing series of Papua New Guinea Economic Updates (PNG EU). It serves twomain purposes. First, it analyzes recent developments in Papua New Guinea, placing them in a broader historicaland global context. Based on these trends and recent policy changes, the report updates the country’s economicoutlook and assesses implications for citizens’ welfare. Second, the PNG EU provides an in-depth analysis of aselected development issue, evaluating how recent trends and policy reforms align with the government’s stateddevelopment objectives. The PNG EU is intended for a wide audience, including policy makers, business leaders,and the community of analysts engaged in PNG’s evolving economy. Since 2023, the publication has been releasedannually. The PNG EU was prepared by the Economic Policy Global Department, under the guidance of Stephen N.Ndegwa (Country Director), Khwima Nthara (Country Manager), Lars Christian Moller (Practice Manager), PaavoEliste (Practice Manager), Benu Bidani (Practice Manager), and Ilias Skamnelos (Practice Manager). The coreeconomic team comprises Reshika Singh and Christopher Wong, with contributions from Alexander Haider, DarianNaidoo, Debasish Das, Gerlin Catangui, Kimberly Chandra, and Maria Andersen. The special focus section wasprepared by Anuja Kar, Allan Oliver, and Sharad Alan Tandon with help from Son Tanh Vo, Carlo Bravi (Food andAgriculture Organization), Agnes Deshormes, Katrina Brandon and Maurice Taondyande. Bridgette Hogan, ClaudiaPalic, and Rachel Leka provided administrative support. The report was edited by Angela Takats, with supportfrom Peter Howe, and designed by Greenhouse Studio. Dissemination was organized by Hamish Wyatt and RuthMoiam. The team is grateful to the Department of Treasury, Department of Agriculture and Livestock (DAL), othergovernment departments, commodity boards, the International Monetary Fund (IMF) and other developmentpartners for their collaboration in the development of this report. The team would like to express appreciationfor feedback from Ralph Van Doorn, Sonya Woo, Lydia Mesfin, Alison Ofotalau, Gitanjali Kumar, Irina Schuman,Mansur Ahmed, and Ruslan Piontkivsky.To be included on an email distribution list for this Economic Update series and related publications, please contactRuth Moiam:rmoiam@worldbank.org. For questions and comments relating to this publication, please contactReshika Singh:rsingh39@worldbank.org. For information about the World Bank and its activities in Papua NewGuinea, please visitwww.worldbank.org/png. Preface and acknowledgments.........................................................................3Abbreviations and Acronyms..........................................................................5List of Figures..................................................................................................6List of Tables......................................................................