Tuesday 26 September 2023
US President Joe Biden greeting Prime Minister James Marape and Treasurer, Ian Link-Stuckey at the White House, in Washington DC, today
Minister for Treasury, Ian Ling-Stuckey, has described the United States economy as the largest in the world, and valued at $US26,854 billion in 2023 according to the latest IMF figures, stating, this is still nearly 40% larger than the second largest economy of China of $US19,373 billion.
He added, even by 2028, based on IMF estimates, the US economy is estimated to still be 18% larger than the China economy, with the US economy at US32,349 billion compared to the China economy of US27,492 billion.
“ By 2028, we expect India to have become the third largest economy at US5,575 billion with an estimated growth rate of 77% from 2021 to 2028.
The Treasurer however said, , this is still only about one-fifth the size of either the US and China.
“These are the fundamental facts. The US economy is still the largest in the world, and is likely to hold this lead role until the early 2030s.
“This means that PNG must build good economic relations with the United States to maximise the chances of trade opportunities, investment and jobs for our people.
“This was a key theme of our Government team’s visit to the US this week” stated Treasurer Ian Ling-Stuckey.
“There remains much that can be done to strengthen our economic relationship with the United States.
PNG’s trade patterns with the United States are relatively small. Based on the latest United Nations data, PNG’s exports to the US were only US93 million in 2022, while imports totaled US129 million.
He added, “This is much smaller than our exports to Australia of US4,034 million, and imports from Australia of US1,762 million, despite the Australian economy at US1,797 million being less than one-tenth of the US economy.”
PNG’s trade linkages are much stronger with other countries also, such as Japan and China.
“These trade data highlight just one example where some hard work and strategic alignment could dramatically grow these economic linkages.
“Better economic relations with the world’s largest economy would be good for incomes and jobs in PNG, and this is why we travel to meet US leaders to help build these relationships” stated the Treasurer.