BSP today released its June Quarter 2026 Economic and Market Pulse, providing a snapshot of economic performance in PNG and the South Pacific, as well as an assessment of the growing set of uncertainties that are expected to moderate the growth outlook in 2026.

In a foreword to the June Quarter Report, BSP Group Chief Executive Officer, Mark Robinson, said that in an environment with accumulating uncertainties, BSP was continuing to advise clients to invest in building resilience and preparing their business through active scenario planning, while maintaining flexibility to capture new opportunities.

“The Middle East conflict and its impact on energy prices are lasting longer than previously expected, and economic growth is showing signs of shifting to a slower gear.

“PNG’s economy remained steady in the June quarter. For our resource-led economy, global uncertainties cut both ways. Government action on fuel prices has protected the economy from the worst of the energy price shock, while we are benefiting from high global prices for key commodity exports like LNG, gold, and copper, together with stable foreign exchange conditions and a solid performance by the agriculture sector.

“We also face local challenges. Climate change impacts from the return of El Niño could create supply disruptions to agricultural exports, as well as higher food prices. Nevertheless, we remain cautiously optimistic about PNG’S economic outlook in the third quarter, with positive sentiment surrounding the potential US$12 billion Papua LNG project.

“BSP is forecasting growth in the third quarter to continue, but at a moderate pace as global and local factors impact demand and inflation.

“Similarly, the South Pacific region has been resilient amid higher energy prices. However, the combination of higher energy prices, softer global demand, El Nino-related risks and tighter financial conditions is likely to weigh on economic activity and tourist inflows in the region. In this environment, growth is also expected to moderate.”

BSP’s June Quarter 2026 Economic and Market Pulse, which includes commentary on the foreign exchange market and the Kina’s performance from Rohan George, Group General Manager, Treasury and Markets and a detailed economic review by BSP’s chief economist, Andrew Wu, is available on BSP’s website.

We’re here to help