According to allcitypopulation, Papua New Guinea is a country located in the southwestern Pacific Ocean. It is composed of the eastern half of the island of New Guinea, as well as several offshore islands. The country is bordered by Indonesia to the west and Australia to the south. Papua New Guinea has a total land area of 462,840 square kilometers and a population estimated at 8 million people in 2019.
The geography of Papua New Guinea is mountainous and rugged, with nearly 80 percent of its land covered in tropical rainforest. The highest peak, Mount Wilhelm, stands at an elevation of 4,509 meters above sea level. The country has numerous rivers that are important sources of food and transportation for local communities. There are also numerous islands off the coast that are home to some small populations. According to Petwithsupplies, the capital city of Papua New Guinea is Port Moresby with a population of 382,500 (with suburbs, UN estimate 2020). Other major cities include Lae.
Papua New Guinea’s economy is largely based on agriculture and natural resources such as timber, fisheries, minerals (gold and copper), oil, gas and hydroelectricity. The agricultural sector accounts for about one-third of GDP and employs about 70 percent of the population mainly engaged in subsistence farming or fishing activities. Mining activities are also important contributors to the economy with gold being its most important export commodity followed by copper ore and other minerals such as silver, nickel and cobalt.
The manufacturing sector contributes around 8 percent to GDP mostly due to light industries such as food processing plants that produce canned fish products or palm oil processing plants which produce edible oils for export markets in Asia Pacific region countries like China or Japan among others. Tourism has also been identified as having potential for growth although it currently only contributes around 1 percent to GDP due mainly to limited infrastructure but there are plans underway to improve this situation in order to attract more tourists from abroad especially from Australia due its proximity.
Despite having abundant natural resources which could be used for economic development purposes Papua New Guinea remains one of the least developed countries in Oceania with high poverty levels estimated at around 40 percent according to World Bank figures from 2017-2018 combined with low Human Development Index standing at 0.543 which ranks it 144th out of 189 countries according World Bank data from 2019. This situation is mainly attributed to weak government institutions coupled with corruption issues that have hindered progress over years despite some recent efforts made by authorities to tackle these challenges.
Foreign Trade of Papua New Guinea
Papua New Guinea is a small, yet influential country in the South Pacific. It has been a major player in the regional economy since its independence in 1975. Its foreign trade consists of both exports and imports, which are essential for economic growth and stability. Its main exports include gold, copper, coffee, cocoa, timber, oil and natural gas. These commodities account for most of its export revenue and are mainly shipped to Australia, Japan and the United States. Papua New Guinea also exports fish and other seafood products to countries in East Asia like China and South Korea.
Imports into Papua New Guinea consist mostly of manufactured goods such as machinery and equipment, transport equipment, consumer goods including food items and pharmaceuticals. The majority of these imports come from Australia followed by Singapore, Japan, China and the United States. Papua New Guinea is also involved in international trade agreements with economies like Australia through the Pacific Agreement on Closer Economic Relations (PACER) Plus which is designed to promote economic integration within the region. This agreement has enabled Papua New Guinea to have access to preferential tariff rates on certain products exported to Australia which helps increase its export revenue overall.
Major Trading Partners of Papua New Guinea
Papua New Guinea’s major trading partners include Australia, Singapore, Japan, China and the United States. Australia is the largest trading partner of Papua New Guinea accounting for over 64% of total imports and exports. This is mainly due to the close economic ties between the two countries as well as their involvement in the Pacific Agreement on Closer Economic Relations (PACER) Plus. Australia is also Papua New Guinea’s main source for imports such as machinery and equipment, transport equipment, consumer goods including food items and pharmaceuticals.
Singapore is the second largest trading partner of Papua New Guinea followed by Japan and China. Singapore accounts for around 10% of Papua New Guinea’s total imports while exports make up approximately 12%. Major imports from Singapore include machinery and equipment while exports consist mostly of gold, copper and timber. Japan is also a major trading partner with around 7% of total imports coming from this country while exports make up around 6%. Major Japanese exports to Papua New Guinea include machinery, electronics and transport equipment.
China is also an important trading partner with around 4% of its total imports coming from this country while exports make up about 3%. Major Chinese exports to Papua New Guinea consist mostly of consumer goods including food items, clothing and pharmaceuticals. The United States rounds out the list with around 2% of its total imports coming from this country while exports make up about 1%. Major US exports to Papua New Guinea consist mostly of machinery and electronics.
Major Imports and Exports of Papua New Guinea
Papua New Guinea’s major imports include machinery and equipment, transport equipment, consumer goods including food items and pharmaceuticals. The majority of these imports come from Australia which accounts for over 64% of total imports. Singapore is the second largest source of imports with around 10% while Japan and China follow with 7% and 4% respectively. Major Japanese exports to Papua New Guinea include machinery, electronics and transport equipment while China mainly exports consumer goods such as food items, clothing and pharmaceuticals. The United States rounds out the list with around 2% of its total imports coming from this country.
Papua New Guinea’s major exports consist mostly of gold, copper and timber. Australia is the main destination for these exports accounting for over 64%. Singapore follows with 12%, Japan with 6%, China with 3% and the United States with 1%. Major US exports to Papua New Guinea consist mostly of machinery and electronics.
The Pacific Agreement on Closer Economic Relations (PACER) Plus has enabled Papua New Guinea to have access to preferential tariff rates on certain products exported to Australia which helps increase its export revenue overall. This agreement has also enabled Papua New Guinea to benefit from increased market access in other countries due to the free trade agreements they have signed with them.