Australasia & South Pacific

Monthly political risk, economic forecasts and business environment analysis on each country market

Latest Australasia & South Pacific Analysis

Economic Analysis - Neutral Monetary Policy For Now But Risks Remain Tilted To Upside - JUNE 2017

Following the Bank of Papua New Guinea's decision to keep rates steady at 6.25% and to provide a neutral monetary policy guidance over the next six months, we now forecast the central bank to remain on hold through end-2017 to support the economy. Commodity-driven inflationary pressures are likely to moderate over the course of the year, while PNG's external woes appear to be easing.


Political Risk Analysis - Political Instability Starting To Undermine Investor Interest - MAY 2017

The increase in number of protests, blockades, and inter-clan rivalry in PNG poses downside risks to its economic growth recovery. Although the country boasts lucrative investment opportunities in the LNG sector, we highlight that the heightened political risks are starting to deter investors, possibly leading to more delays and cancellations of planned investment projects.