Country risk report · Oceania
Papua New Guinea
Political RiskHigh
Operational RiskHigh
Security RiskHigh
Summary
Papua New Guinea (PNG) is a resource-rich and culturally diverse nation located in the southwestern Pacific Ocean. It shares the island of New Guinea with Indonesia and consists of over 600 islands, making it one of the most geographically complex countries in the world. PNG is renowned for its extraordinary cultural diversity, with over 800 distinct languages spoken among its population of approximately 9.6 million people (2024 estimate). The country gained independence from Australia in 1975 and continues to develop its political and economic structures.
Port Moresby serves as the capital and economic hub, although Lae, the second-largest city, is an important commercial center due to its industrial base and proximity to the Highlands region. PNG's economy is heavily dependent on its vast natural resources, particularly mining, oil and gas, agriculture, and fisheries. However, economic instability, underdeveloped infrastructure, and security challenges have hindered sustainable development and foreign investment.
The country’s terrain is rugged and remote, making transportation and infrastructure development difficult. Additionally, PNG is prone to natural disasters such as earthquakes, volcanic eruptions, and tsunamis, which contribute to economic and social vulnerability.
- Capital
- Port Moresby
- Population
- 9.6 million (2024 estimate)
- Official Languages
- English, Tok Pisin, Hiri Motu
- Currency
- Papua New Guinean Kina (PGK)
- Key Industries
- Mining (gold, copper, oil, natural gas), agriculture (coffee, cocoa, palm oil), fisheries, and forestry
- GDP
- $28 billion (2023 estimate)
- GDP Growth
- 3.5% (2023 estimate)
Table of contents
- Papua New Guinea | Overview
- Political Risk Summary
- Political Stability
- Regulatory Risk
- Contract Enforcement
- Integrity and Corruption
- Sovereign Risk
- Operational Risk Summary
- Institutional Risk
- Infrastructure Risk
- Labour Risk
- Security Risk Summary
- Crime Risk
- Terrorism Risk
- War Risk
- Civil Unrest
- Kidnap Risk
Risk levels in the report
From the report’s summary page. The full report explains each level and lists the key concerns behind it.
- Very Low
- Low
- Medium
- High
- Very High
| Category | Risk level |
|---|---|
| Political Risk | High |
| Political Stability | High |
| Regulatory Risk | Medium |
| Contract Enforcement | High |
| Integrity and Corruption | High |
| Sovereign Risk | Medium |
| Operational Risk | High |
| Institutional Risk | High |
| Infrastructure Risk | High |
| Labour Risk | Medium |
| Security Risk | High |
| Crime | High |
| Terrorism | Low |
| War Risk | Low |
| Civil Unrest | Medium |
| Kidnap Risk | Medium |
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