Papua New Guinea’s economy grew by 5.6 percent in 2025, one of the strongest performances in the Pacific, but is not yet creating enough quality jobs for its fast‑growing population, according to a World Bank report released on July 2, 2026.
The Papua New Guinea Economic Update: Turning Growth into Jobs said growth was driven by strong gold and LNG production and exchange rate reforms that improved the business environment beyond the resource sector.
But formal employment per capita has declined, with most new workers entering subsistence farming and informal work.
World Bank Division Director Han Fraeters said PNG faced a critical moment: “The economy is growing and the resource sector has major opportunities ahead. There is now a small window of opportunity to turn this momentum into better jobs and livelihoods for all Papua New Guineans,” he said.
He added: “All evidence points in the same direction: PNG can make its resource wealth work better for its people. That means securing fairer returns, investing more in human capital and infrastructure, and improving the conditions for private sector growth.”
The report outlined a three‑part jobs agenda: strengthening foundations through infrastructure and human capital, enhancing the business environment and governance so firms can invest and hire, and mobilizing private capital while using resource revenues more effectively.
Agribusiness was identified as a promising pathway, with stronger value chains projected to create 330,000 formal jobs over the next decade and reduce poverty by five percentage points, lifting about half a million people out of poverty.
The report warned that inadequate infrastructure, weak human capital, crime, insecurity, regulatory uncertainty, and limited access to finance remain major constraints.
It said better roads, electricity, and digital connectivity are needed beyond Port Moresby and Lae, while stronger investment in nutrition, education, and skills is critical for PNG’s young population.
Upcoming projects including Papua LNG and Wafi‑Golpu were highlighted as major opportunities for long‑term growth and job creation.
But the report stressed that agreements must ensure better capture and management of resource revenues to support national development priorities.