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Flag description: divided diagonally from upper hoist-side corner; the
upper triangle is red with a soaring yellow bird of paradise centered;
the lower triangle is black with five white five-pointed stars of the
Southern Cross constellation centered

@Papua New Guinea:Economy

Economy-overview: Papua New Guinea is richly endowed with natural
resources, but exploitation has been hampered by the rugged terrain
and the high cost of developing an infrastructure. Agriculture
provides a subsistence livelihood for the bulk of the population.
Mineral deposits, including oil, copper, and gold, account for 72% of
export earnings. Budgetary support from Australia and development aid
under World Bank auspices have helped sustain the economy. In 1995,
Port Moresby reached agreement with the IMF and World Bank on a
structural adjustment program, of which the first phase was
successfully completed in 1996. Droughts caused by the El Nino weather
pattern wreaked havoc on Papua New Guinea's coffee, cocoa, and coconut
production, the mainstays of the agricultural-based economy and major
sources of export earnings. The coffee crop was slashed by up to 50%
in 1997. Moreover, droughts could bite into growth in 1998.

GDP: purchasing power parity-$11.6 billion (1996 est.)

GDP-real growth rate: 2.3% (1996 est.)

GDP-per capita: purchasing power parity-$2,650 (1996 est.)

GDP-composition by sector:
agriculture: 26.4%
industry: 41%
services: 32.6% (1996 est.)

Inflation rate-consumer price index: 11.6% (1996)

Labor force:
total: 1.941 million
by occupation: agriculture 64% (1993 est.)

Unemployment rate: NA%

Budget:
revenues: $1.5 billion
expenditures: $1.35 billion, including capital expenditures of $NA
(1997 est.)

Industries: copra crushing, palm oil processing, plywood production,
wood chip production; mining of gold, silver, and copper; crude oil
production; construction, tourism

Industrial production growth rate: NA%

Electricity-capacity: 490,000 kW (1995)

Electricity-production: 1.76 billion kWh (1995)

Electricity-consumption per capita: 410 kWh (1995)

Agriculture-products: coffee, cocoa, coconuts, palm kernels, tea,
rubber, sweet potatoes, fruit, vegetables; poultry, pork

Exports:
total value: $2.5 billion (f.o.b., 1996)
commodities: gold, copper ore, oil, logs, coffee, palm oil, cocoa,
lobster
partners: Australia, Japan, Germany, UK, South Korea

Imports:
total value: $1.7 billion (c.i.f., 1