International and domestic economic conditions  1.  International conditions  World economy Although the underlying recovery of the world economy is still on track, there seems little sign of any narrowing of the gap between the advanced countries and the newly emerging countries in what has been termed the two-speed global recovery 1 .
Projections by the Bank of Papua New Guinea indicate that economic growth in 2011 will be around 9.5%. The growth in economic activity shall continue all through the 2011 to 2014 period. The high economic growth in 2011 is driven by the construction of the LNG project, and the global demand for the country’s primary exports.