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International Merchandise Trade

International Merchandise Trade 2024

Released Reference period: 2024 Economy

1. Key Highlights 2020 – 2024

Significant Growth PNG’s trade activity has demonstrated substantial growth resulting in positive balance of trade throughout the 5 year period.

Total Exports: Increased from K35 billion (2020) to K54 billion (2024) a 52.45% increase over the 5 year period.

Total Imports: Rose from K16 billion (2020) to K26 billion (2024) a 59.29% increase over the 5 year period.

PNG EXPORTS 2020-2024

Consistent Export Growth

In 2024, PNG Exports increased by 10% from K47.5 billion in 2023 to K52 billion in 2024

Over the five-year period, PNG Exports increased by 52.5% from K34 billion in 2020 to K52 billion in 2024.

PNG IMPORTS 2020-2024

Rising Imports: PNG Imports have increased steadily.

From 2023 to 2024, imports rose by 15.13% from approximately K22 billion to K26 billion in 2024.

Over the five-year period PNG Imports increase by 59.29% from K16 billion in 2020 to K26 billion in 2024

PNG BALANCE OF TRADE 2020-2024

PNG has maintained a positive trade balance throughout the period.

The Balance of Trade increased from K26 billion in 2023 to K28 billion in 2024, a 6.90% increase.

Over the 5-year period, the trade balance increased by 46.76% from K19 billion in 2020 to K28 billion in 2024.

2. Major Drivers of PNG Export in 2024

  • Leading the charge in recent growth is Cocoa Beans surging by an astounding 225% from K400 million in 2023 to K1.3 billion in 2024. This remarkable growth propelled its market share from 1.1% in 2023 to 2.8% in 2024, improving its rank from 9th to 7th position.
  • Copper Ores and Concentrates experienced a near-tripling in value, jumping by over 194% from K1.7 Billion in 2023 to K5.0 billion Kina in 2024. Its market share significantly expanded from 4.7% to 10.8%, elevating its rank from 6th to the 3rd most valuable PNG export.
  • Petroleum Oils also saw a significant climb, increasing by over 61% from K1.8 billion in 2023 to K2.9 billion in 2024. Its market share rose from 4.9% to 6.3%, maintaining its position as PNG’s 5th largest export.
  • Gold exports showcased powerful momentum, rising by over 50% from K6.5 billion in 2023 to K9.8 billion in 2024. Its market share increased from 17.8% to 21.2%, solidifying its position as PNG’s 2nd most valuable export.
  • Frozen Fish experienced a strong 40% increase, growing from K1.0 billion in 2023 to K1.4 billion in 2024. This lifted its market share from 2.7% to 3.0%, improving its rank from 8th to 6th position.

Liquified Natural Gas (LNG), PNG’s largest export, continued its upward trajectory with a 6.2% increase, from K19.4 billion in 2023 to K20.6 billion in 2024. Despite its growth, its overall market share slightly decreased from 53.2% to 44.5% due to other commodities’ faster expansion, but it firmly remains the number 1 export.

Nickel Oxide Sinters and other Intermediate Products of Nickel Metallurgy remained remarkably stable, holding at K1.0 billion from both 2023 and 2024, reflecting no change. Its market share slightly decreased from 2.7% to 2.2%, maintaining its 8th position as other exports grew faster.

Gold Ores and Concentrates faced a downward trend, decreasing by 5.6% from K1.8 Billion in 2023 to K1.7 Billion in 2024. This caused its market share to decline from 4.9% to 3.7%, dropping its rank from 5th to 9th position.

Palm Oil exports experienced a notable decline, decreasing by over 10% from K2.9 Billion in 2023 to K2.6 billion in 2024. Consequently, its market share fell from 7.9% to 5.6%, causing its rank to drop from 3rd to 4th position.

3. Papua New Guinea’s Imports Highlights 2023-2024

Papua New Guinea’s import activity shows a mix of increases and decreases across key commodities between 2023 and 2024. The highest-value import remains Petroleum oils, reaching K 2.9 billion in 2024, with a notable increase of 11.16% from the previous year. This underscores the nation’s reliance on fuel imports.

In terms of growth, the import of Parts for vehicles experienced the largest percentage increase (14.28%), rising to K447.4 million in 2024. This suggests potential expansion or increased activity in the transportation sector.

Conversely, imports of Rice, a staple food, decreased slightly by 5.72% to K 628.2 million in 2024, while Motor vehicles import also declined by 7.51% to K 487.6 million.

Petroleum oils consistently the largest PNG imports, from K1.3 billion (2020) to K4.3 billion (2024). This represents a 230.5% increase from 2020-2024 and a 20.9% increase from 2023 (K3.5 billion) to 2024, highlighting PNG’s high energy import dependence.

Rice imports grew from K681 million (2020) to K904 million (2024), a 32.8% increase (4.8% from 2023’s K863 million).

Wheat and meslin imports surged from K186 million (2020) to K523 million (2024), a 181.2% increase (61.9% from 2023’s K323 million), indicating significant dependence on imported staple foods.

Imports of machinery parts – K476 million in 2020 to K812 million in 2024, a 70.6% increase; 13.3% from 2023’s (K717 million)

Motor vehicles for goods transport increased from K357 Million in 2020 to K791 million in 2024, a 121.6% increase; 51.5% from 2023’s K522M) have steadily increased.

Parts and accessories for motor vehicles also rose from K287 million (2020) to K515 million (2024), a 79.4% increase (7.5% from 2023’s K479M).

Telephone sets imports show fluctuating trends, with a notable rebound in 2023 (K441 million) after a sharp dip in 2022 (K58 million). Overall, they decreased from K424 million (2020) to K408 million (2024), a -3.8% change (and -7.5% from 2023 to 2024).

Surge in Prefabricated Buildings: A dramatic increase in prefabricated building imports in 2024 (K367 million from K61 million in 2023) represents a 501.6% increase from 2023 to 2024, and an 865.8% increase from 2020 (K38 million), suggesting significant construction or development projects.

Overall Trend: PNG’s import landscape is primarily driven by energy needs, food security, and development-related investments.

4. TRADE BY HS CATEGORIES

PNG EXPORT BY HS CLASSIFICATION (2024)

PNG Export Performance 2024 – Key Growth Sectors

Papua New Guinea’s (PNG) Export by HS Classification performance in 2024 was shaped by global demand, commodity prices, and domestic economic factors.

  • Mineral Products: K30.7 billion in exports, a 22.7% increase from K25.0 billion in 2023. Driven by global energy demand (natural gas, crude oil) and gold prices, influenced by post-pandemic recovery and geopolitical events.
  • Prepared Foodstuffs, Beverages, Spirits & Tobacco: K2.2 billion in exports, an impressive 85.9% increase from K1.2 billion in 2023. Growth fueled by regional demand, population growth in Asia-Pacific, and changing consumer preferences.
  • Live Animals: Animal Products: K2.0 billion in exports, a 21.9% increase from K1.7 billion in 2023. Reflects expanding regional demand and growth in PNG’s agricultural sector.

PNG Export Performance 2024 – Declining & Stable Sectors

While some sectors saw strong growth, others experienced declines or more stable performance.

  • Pearls, Precious & Semi-Precious Stones & Metals: K10.2 billion in exports, an 18.4% decrease from K12.5 billion in 2023. Decline attributed to changes in investor sentiment due to rising interest rates and recession concerns, reducing safe-haven demand for gold.
  • Animal or Vegetable Oils & Fats: K3.1 billion in exports, a 7.1% decrease from K3.3 billion in 2023. Influenced by fluctuations in global commodity prices and increased competition in the palm oil market.

Other Noteworthy Categories:

  • Base Metals & Articles Thereof: Slight decrease of 1.1%.
  • Wood, Cork & Articles Thereof: Decrease of 6.5%.
  • Vegetable Products: Decrease of 2.4%.

5. PNG IMPORTS BY HS CLASSIFICATION

PNG Imports by HS Categories 2020 -2024
PNG Import Growth & Key Sectors (2020-2024)

Papua New Guinea’s (PNG) import market shows consistent and significant growth, increasing by 39.5% from K17.6 billion in 2020 to K24.51 billion in 2024. Between 2023 and 2024, imports grew by 12.9%. Dominant Import Sectors in 2024:

  • Machinery & Mechanical & Electrical Parts: K6.0 billion (24.5% market share). Increased 45.5% since 2020 (from K4.13 billion) and 11.7% since 2023 (from K5.38 billion). Driven by essential industrial and electrical equipment for PNG’s key industries, including heavy machinery for resource extraction and power generation.
  • Mineral Products: K4.71 billion (19.2% market share). Increased 67.4% since 2020 (from K2.82 billion) and 12.6% since 2023 (from K4.19 billion). Primarily consists of imported fuels.
PNG Import Market – High Growth & Evolving Demands

Beyond the dominant sectors, PNG’s import market highlights significant growth in transportation and consumer goods, indicating evolving economic priorities. High Growth Import Sectors (2020-2024):

  • Vehicles, Aircraft & Associated Transport Equipment: Projected K2.88 billion (11.7% market share). 116.0% increase since 2020, with a 9.0% increase from 2023. Driven by motor vehicles and aircraft.
  • Miscellaneous Manufactured Articles: K806 million (3.3% market share). Remarkable 190.8% increase since 2020, with a 98.6% increase from 2023. Comprises diverse finished consumer and industrial goods.
Other Notable Increases (2020-2024):
  • Base Metals & Articles Thereof: Up 66.8%.
  • Plastic & Rubber & Articles Thereof: Up 50.8%.
  • Vegetable Products: Up 48.9%.
  • Prepared Foodstuffs, Beverages, Spirits & Tobacco: Up 45.3%.
  • Chemicals and Allied Products: Up 40.3%.

Overall, while machinery and mineral products remain the largest import sectors, the rapid growth in transportation and diverse manufactured articles signals shifting economic needs and consumer preferences in PNG.

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6. STANDARD INTERNATIONAL TRADE CLASSIFICATION (SITC)

The Standard International Trade Classification (SITC) is a vital hierarchical system for analysing international trade statistics. By clearly delineating the specific goods PNG imports and exports, SITC unveils the fundamental structure of our trade, revealing our reliance on different sectors like raw materials, agriculture, or manufacturing. Moreover, SITC data enables the tracking of performance in key economic sectors and illuminates the crucial input-output relationships between imports and domestic industries, providing essential information for informed policy decisions regarding diversification and industrial development.

Export by Standard International Trade Classification (SITC)
Primary Sector Dominance (Mining & Energy):
  • Mineral fuels, lubricants and related materials: This category, primarily representing LNG and crude oil, as the undisputed backbone of PNG’s export economy. Its consistent high values and significant growth from 2020 to 2024 (and 2023-2024) underscore PNG’s identity as a resource-rich nation.
  • Crude materials, inedible, except fuels: This likely includes exports of metallic ores (like gold and copper) and other raw materials. Its substantial value and growth indicate the continued importance of mining and raw material extraction to the economy.
Growing Agricultural Sector:
  • Food and live animals: The consistent and strong growth in this category (over 100% from 2020-2024) is a positive indicator of the increasing
Limited Manufacturing and Value-Added Exports:
  • Manufactured goods classified chiefly by material: While showing some growth, this category is significantly smaller than primary exports and exhibits volatility. This suggests that PNG’s manufacturing sector is still developing and contributes a relatively small portion to overall exports, indicating a need for further industrialization and value-added processing.
  • Machinery and transport equipment, Miscellaneous manufactured goods, Chemicals and related products, Beverages and tobacco: These categories consistently represent a very small or negligible portion of PNG’s exports. This reinforces the observation that PNG primarily exports raw materials and imports manufactured goods and capital equipment, characteristic of a developing economy.

Overall, PNG’s export economy remains heavily concentrated in the primary sectors, particularly mineral fuels and raw materials.

There is encouraging growth in the agricultural sector (food and live animals, and animal/vegetable oils), the manufactured and value-added goods remains limited.

This trade structure makes PNG’s economy vulnerable to global commodity price fluctuations. Diversifying the export base towards higher value-added products and strengthening domestic processing capabilities would contribute to a more resilient and sustainable trade profile.

Imports by Standard International Trade Classification 2024

PNG’s imports are driven by a strong focus on development (machinery), fundamental energy needs, and consistent food requirements, with other categories filling niche demands. Short-term shifts can be influenced by specific projects or market dynamics.

Key Import Sector Performance:

Capital and Intermediate Goods. This sector grew from K10.4 billion in 2020 to K16.7 billion in 2024, a +60.6% increase. From 2023 to 2024, it rose from K14.6 billion to K16.7 billion, an increase of +14.4%. Its market share remained consistent at approximately 64% of total imports, specifically 63.7% in 2024. This indicates strong investment and industrial expansion.

Food and Beverages. Imports in this sector increased from K2.9 billion in 2020 to K4.4 billion in 2024, a +51.7% growth. From 2023 to 2024, it grew by +18.9%, from K3.7 billion to K4.4 billion. This sector holds approximately 17% of total imports, specifically 16.8% in 2024, reflecting consistent consumer demand.

Energy and Primary Resources, imports increased from K2.8 billion in 2020 to K4.7 billion in 2024, a +67.9% growth. From 2023 to 2024, it recovered with a +14.6% increase, reaching K4.7 billion. Market share remained stable at approximately 18%, specifically 17.9% in 2024.

The Unclassified/Unclassified/Another sector. This sector grew from K0.1 billion in 2023 to K0.4 billion in 2024, representing a +300.0% increase. Its market share rose from 0.4% in 2023 to 1.5% in 2024.

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7. PNG INTERNATIONAL TRADE WITH PARTNER COUNTRIES 2024

PNG Export by Partner Countries 2024

PNG’s exports to its major partners generally show a robust upward trajectory from 2020 to 2024, with significant growth in many key markets.

The 2023-2024 period highlights dynamic shifts, with some partners experiencing remarkable surges while others saw contractions or moderate growth.

The positive overall growth points towards a strengthening and diversifying export base.

PNG Top 10 Export Destination Partner countries 2024

  • Japan: Remained a consistently strong export partner. Exports to Japan increased from K7.82 billion in 2020 to K11.86 billion in 2024, representing a substantial 51.7% growth over the period. From 2023 to 2024, exports grew by 19.2% (K1.91 billion) from K9.95 billion to K11.86 billion.
  • Australia: Exports to Australia grew from K8.07 billion in 2020 to K10.72 billion in 2024, indicating a 32.8% increase. However, from 2023 to 2024, Australia saw a significant decline of -21.0% (K2.85 billion) from K13.57 billion to K10.72 billion).
  • China: Showed robust overall growth from K6.44 billion in 2020 to K9.90 billion in 2024, a 53.7% increase. Critically, from 2023 to 2024, exports to China experienced a phenomenal rebound, surging by 202.8% (K6.63 billion) from K3.27 billion to K9.90 billion.
  • Republic of China (Taiwan): Exports to Taiwan increased from K2.62 billion in 2020 to K3.61 billion in 2024, a 37.8% rise. However, from 2023 to 2024, Taiwan experienced a significant drop by -45.7% (K3.04 billion) from K6.65 billion to K3.61 billion, indicating a substantial contraction in the most recent year. Singapore: Demonstrated remarkable overall growth in exports from K1.30 billion in 2020 to K3.35 billion in 2024, a significant 157.7% increase. This strong trend continued into 2024, with exports almost doubling by 98.2% (K1.66 billion) from K1.69 billion to K3.35 billion from 2023
  • Singapore: Demonstrated remarkable overall growth in exports from K1.30 billion in 2020 to K3.35 billion in 2024, a significant 157.7% increase. This strong trend continued into 2024, with exports almost doubling by 98.2% (K1.66 billion) from K1.69 billion to K3.35 billion from 2023
  • Republic of Korea: Exports to the Republic of Korea saw strong overall growth from K1.33 billion in 2020 to K2.52 billion in 2024, an 89.5% increase. However, from 2023 to 2024, there was a slight decrease by -4.5% (K120 million) from K2.64 billion to K2.52 billion.
  • Malaysia: Exports to Malaysia more than doubled overall, increasing from K670 million in 2020 to K1.54 billion in 2024, a substantial 129.9% growth. This robust growth was largely driven by a significant increase of K790 million in 2023 to K1.54 billion in 2024, a 94.9% rise.
  • United Kingdom: Exports to the UK experienced significant overall growth from K320 million in 2020 to K850 million in 2024, an impressive 165.6% increase. However, from 2023 to 2024, exports slightly decreased by K70 million from K920 million to K850 million, a -7.6% change.
  • Indonesia: Showed the most dramatic overall percentage growth, increasing from K90 million in 2020 to K760 million in 2024, an extraordinary 744.4% increase. This rapid expansion continued from 2023 to 2024, with exports rising by K440 million from K320 million in 2023 to K760 million in 2024, a 137.5% increase.
  • New Zealand: Exports to New Zealand also grew overall, from K40 million in 2020 to K70 million in 2024, a 75.0% increase. From 2023 to 2024, exports increased by K10 million (from K60 million to K70 million), a 16.7% rise.

PNG’s export landscape from 2020 to 2024 demonstrates a dynamic market. While major partners like Japan, Australia, and China remain crucial, the 2023-2024 period reveals notable shifts:

  • China experienced a remarkable recovery (+202.8%), and strong growth continued with Indonesia (+137.5%), Singapore (+98.2%), and Malaysia (+94.9%).
  • Conversely, Australia (-21.0%) and Taiwan (-45.7%) saw significant declines in the most recent year. This highlights PNG’s adapting trade strategies, with a growing focus on high-growth Asian markets that are contributing significantly to PNG overall export revenue.

PNG TOP IMPORT PARTNER COUNTRIES

Overall Trends
  • PNG’s import data from 2020 to 2024 reveals a dynamic and generally increasing trend.
  • Australia and China remain the top import sources, both showing significant overall growth.
  • Notably, countries like the Republic of Korea (+252.9% overall) and Singapore (+105.2% overall) have emerged as rapidly growing import partners.
  • The 2023-2024 period highlights specific shifts: strong import growth from Australia (+28.5%), Japan (+33.3%), Indonesia (+11.1%), and New Zealand (+32.6%).
  • Significant contractions were observed from Taiwan (-64.6%), Malaysia (-24.5%), and the United Kingdom (-20.0%).
  • These trends illustrate PNG’s evolving supply chains and diversification of PNG import sources.
Key Observations by Partner Countries:
  • Australia: Remains PNG’s largest import partner, with imports growing from K5.89 billion in 2020 to K8.56 billion in 2024, an overall increase of 45.3%. In 2023 to 2024, imports from Australia increased by K1.90 billion (28.5%) from K6.66 billion to K8.56 billion.
  • China: Imports from China saw significant growth from K2.63 billion in 2020 to K4.38 billion in 2024, a 66.5% growth overall. From 2023 to 2024 saw a modest increase of 4.85% (K200 million) from K4.18 billion to K4.38 billion.
  • Indonesia: Imports from Indonesia more than doubled, increasing from K490 million in 2020 to K1.00 billion in 2024, representing an overall growth of 104.1%. From 2023 to 2024, imports grew by 11.1% (K100 million) from K900 million to K1.0 billion.
  • Japan: Imports from Japan showed substantial growth, rising from K630 million in 2020 to K1.08 billion in 2024, a total increase of 71.4%. Strong growth from 2023 to 2024 by 33.3% from K810 million to K1.08 billion.
  • Republic of Korea: Imports from the Republic of Korea saw remarkable growth, from K170 million in 2020 to K600 million in 2024, an overall increase of 252.9%. From 2023 to 2024, imports increased by 15.4% from K520 million to K600 million.
  • Malaysia: Imports from Malaysia saw a moderate overall increase from K1.09 billion in 2020 to K1.20 billion in 2024, a 10.1% growth. From 2023 to 2024, imports saw a notable decrease of -24.5% from K1.59 billion to K1.20 billion.
  • New Zealand: Imports from New Zealand increased from K420 million in 2020 to K610 million in 2024, an overall growth of 45.2%. From 2023 to 2024, imports grew by 32.6% from K460 million to K610 million.
  • Singapore: Imports from Singapore more than doubled, growing from K2.13 billion in 2020 to K4.37 billion in 2024, an overall increase of 105.2%. From 2023 to 2024, imports increased by 22.1% from K3.58 billion to K4.37 billion.

PNG Trade by Region in 2024

Asia – PNG’s dominant trade partner,

  • Exports grew by +22.8% from K30.2 billion in 2023 to K37 billion in 2024.
  • Imports increased by +6.9% from K13.8 billion in 2023 to K14.8 billion in 2024,
  • Trade surplus of K22.2 billion in 2024, a +36.3% increase.

Oceania

  • Exports decreased by -21.7% from K13.8 billion in 2023 to K10.8 billion in 2024
  • Imports grew by +28.9% from K7.1 billion in 2023 to K9.1 billion in 2024
  • PNG maintains a trade surplus of K1.6 billion. However, there is a significant narrowing of the trade surplus from K6.7 billion to K1.6 billion in 2024 (-75.7%)

Europe

  • Exports grew by +17.3% from K4 billion in 2023 to K4.7 billion in 2024;
  • Imports increased by +43.5% from K581 million to K834 million
  • PNG maintained a trade surplus of K3.9 billion (+12.9% from 2023)
  • Americas – exports grow by +53.2% from K410 million in 2023 to K628 million in 2024, while imports increased by +15.5% from K547 million to K632 million, resulting in a dramatic narrowing of the trade deficit from K-137 million to just K-4 million in 2024 (-97.1%).
  • Africa represent smaller trade volumes: Africa saw exports grow from K18 million to K70 million (+288.9%) and imports from K118 million to K133 million (+12.7%), with its trade deficit narrowing from K-100 million to K-63 million (-37.0%)

Summary

  • PNG’s trade patterns are heavily skewed towards Asia, which consistently provides massive export markets and is the primary source of imports, resulting in a substantial and growing trade surplus for PNG.
  • PNG’s trade patterns are heavily skewed towards Asia, which consistently provides massive export markets and is the primary source of imports, resulting in a substantial and growing trade surplus for PNG.
  • Europe also consistently generates a healthy surplus.
  • Oceania provides a significant two-way trade, its balance is more volatile, showing a substantial reduction in surplus in 2024.
  • PNG generally runs trade deficits with The Americas and Africa, though the deficit with The Americas has drastically narrowed in the most recent period.
  • The trends from 2023 to 2024 generally indicate continued growth in trade, with some rebalancing occurring across different regions.

8. COMPARATIVE ANALYSIS OF PNG’S IMPORTS AND EXPORTS BY SITC (2020-2024)

By comparing the trends and structures of PNG’s imports and exports, we can gain a deeper understanding of PNG trade dynamics:

i. Dominant Trade Categories:

  • Exports: Heavily dominated by mineral fuels, lubricants, and related materials and crude materials, inedible, except fuels.
  • Imports: Led by machinery and transport equipment, followed by significant values in mineral fuels, food and live animals, and manufactured goods classified chiefly by material.

ii. Trade Balance in Key Sectors:

  • Mineral Fuels: PNG is a net exporter of mineral fuels, with export values significantly higher than import values in most years.
  • Crude Materials: PNG is also a net exporter of crude materials.
  • Food and Live Animals: PNG appears to be a net importer of food and live animals, as import values are generally higher than export values.
  • Manufactured Goods and Machinery: PNG is a net importer of manufactured goods and, particularly, machinery and transport equipment, indicating a reliance on foreign sources for these essential items.

iii. Overall Trade Structure:

  • PNG’s trade profile suggests an economy that relies heavily on the export of natural resources (minerals and fuels) to generate revenue.
  • A significant portion of this revenue is then used to import manufactured goods, machinery, transport equipment, and food products to meet domestic consumption and development needs.