Annual potential GDP growth has more than doubled to around 2.9 percent from its 2010 trough of 1.2 percent, primarily because of this labour force expansion. Private consumption is being boosted by the strong growth in migration, record tourist inflows and the 11¼ percent increase in employment over the past 3 years.
The reforms also meant we were in a better position to face the current financial crisis. While PNG may not be directly affected by the global financial crisis, we will be if and when the financial crisis turns into a recession. Already, the major industrialized countries are experiencing negative growth in economic activity.