Papua New Guinea Economic Update – June 2026

Papua New Guinea's economy is growing at one of the fastest rates in the Pacific, but that growth is still not translating into enough secure, formal jobs for its rapidly growing workforce.

The World Bank's Papua New Guinea Economic Update: Turning Growth into Jobs provides an assessment of the country's economy. The report finds that PNG's economy expanded by 5.6 percent in 2025, one of the strongest performances in the Pacific region. However, formal employment per person has declined, with most new workers entering subsistence farming and low-productivity informal work rather than secure, formal jobs.

The Update calls for stronger investment in people, infrastructure, the business environment, and private sector growth to help more Papua New Guineans benefit from economic growth.

The Update also identifies three interconnected pillars that must be strengthened to better connect growth to jobs:

1. Strengthening Economic Foundations

2. Enhancing the Business-Enabling Environment

3. Mobilizing Private Capital

Key Findings