World Bank: PNG's growth is strong, but job creation lags

Papua New Guinea's economy experienced robust growth of 5.6 percent in 2025, marking one of the strongest performances in the Pacific region. This economic expansion was primarily fueled by significant gold and liquefied natural gas (LNG) production, coupled with exchange rate reforms that fostered a more favorable business environment beyond the resource sector.

However, the economic success has not translated into sufficient job creation. According to a World Bank report, formal employment per capita has actually declined. The majority of new workers are finding employment in subsistence farming and the informal economy, indicating a gap between economic growth and quality job opportunities for the nation's rapidly expanding population.

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The economy is growing and the resource sector has major opportunities ahead. There is now a small window of opportunity to turn this momentum into better jobs and livelihoods for all Papua New Guineans.

World Bank Division Director Han Fraeters described PNG as being at a "critical moment." He emphasized that the current economic momentum, particularly within the resource sector, presents a "small window of opportunity" to create better jobs and improve livelihoods for all citizens. Fraeters stressed that the nation must ensure its resource wealth benefits its people more effectively.

The World Bank's report outlines a three-pronged strategy to address the jobs deficit. This includes strengthening foundational elements like infrastructure and human capital, enhancing the overall business environment and governance to encourage private sector investment and hiring, and mobilizing private capital while improving the management of resource revenues. The report identifies agribusiness as a particularly promising sector, projecting it could create 330,000 formal jobs and lift half a million people out of poverty within the next decade.

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All evidence points in the same direction: PNG can make its resource wealth work better for its people. That means securing fairer returns, investing more in human capital and infrastructure, and improving the conditions for private sector growth.