However, support for higher demand may only be partial: first, a large share of excess savings accumulated during the pandemic accrued to the wealthiest households with a lower propensity to consume and, second, a substantial part of the excess savings is likely to be reabsorbed via weaker borrowing dynamics and – among lower-income households – to finance the price increases for essentials like food and heating.
In addition, the PNG Micro Finance Limited, which obtained a banking license in 2004, and has operations in NCD, Western and Oro Province. The micro-finance industry development is a meaningful way of mobilizing savings and servicing a large section of the community to whom financial facilities are not readily available.