OREANDA-NEWS. While Papua New Guinea (PNG) enjoys robust economic growth, it needs to move quickly to implement policies that can build resilience to external shocks and more widely distribute the benefits of growth, says a new  Asian Development Bank (ADB) report released today.

ADB’s flagship annual economic publication, Asian Development Outlook 2015 (ADO) forecasts new Liquefied Natural Gas (LNG) exports to drive growth of 15% this year. This expansion will moderate to 5% in 2016.

“PNG is maintaining its position as one of the fastest growing economies in Asia and the Pacific in 2014-2015,” said Marcelo Minc, Country Director of ADB’s Papua New Guinea Resident Mission. “However as the economy comes to rely more on resource extraction, policy will need to be focused on closing the gap between rich and poor to ensure future prosperity in PNG.”

After 4 years of rapid spending growth, ADO notes that PNG’s 2015 budget is aiming for a much-needed fiscal consolidation. If this is achieved the inflation rate should slow to 5.5% in 2015, and 4.1% in 2016.

The report suggests the government take on an ambitious reform agenda to ensure PNG transitions successfully and inclusively into greater resource dependence.

“Fiscal consolidation, strengthening institutions to ensure transparent and accountable resource revenue management, and enhancing the quality of public expenditure will be key”, said Mr. Minc.

PNG joined ADB in 1971. It is ADB's largest partner in the Pacific in terms of loans for public and private sector development.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members—48 from the region.