S&P lowers Papua New Guinea

S&P said it downgraded Papua New Guinea’s long-term foreign and local currency sovereign credit ratings to B- from B.

“We estimate the general government deficits to rise to an average 5.4% of GDP between 2019 and 2021. Additionally, the spread of Covid-19 could have larger effects, as potential containment measures could dampen domestic economic activity and constrain tax collection, amid an expected hike in health and social expenditure to tackle the consequences of the pandemic,” the agency said in a press release.

The outlook is stable.

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