PNG Macro Environment
KFM still believe that GDP growth will be stronger in H2 2014 than the last half of 2013. This is in part due to earlier than expected PNG LNG delivery, and also through government infrastructure spending. Recent comments from BPNG Governor Bakani confirm our view that inflation of 5-6% for 2014 is still on the cards, with upside risk due especially to recent depreciation of the PNG Kina.
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