Real GDP growth is expected to remain buoyant in 2012 of around 8.0 percent, supported by strong domestic demand, as construction activity for the PNG Liquefied Natural Gas (LNG) project peaks, production at the Ramu Nickel/Cobalt mine commences, other private sector investments come on line, and high public and private spending ensues in the lead up to the national elections.
All sectors are expected to grow, led by manufacturing, building and construction, and transportation/storage/communication. The Bank projects annual headline inflation for 2012 to be around 8.0 percent, and both the exclusion-based and trimmed mean measures to be around 7.5 percent.