Treasury Minister, Patrick Pruaitch, says the Papua New Guinean economy is predicted to grow by 2.8 per cent in 2017.
The treasurer supported his statement with predictions that the mining sector will generate more revenue next year.
He made this statement when addressing the business community in Port Moresby, this morning.
The treasury minister explained that despite the predicted economic growth in 2017, there will be an increase in inflation.
Inflation is the additional cost consumers and business owners pay apart from the actual cost of a good or service; because of the drop in the value of the kina against foreign currencies.
For 2017, it is predicted to increase by 6.6 per cent.
For average Papua New Guineas, this means they will be spending more on goods and services in 2017.
The same burden will be felt by business owners and local members in terms of operational and transportation costs when bringing in services into rural areas.
The 2017 National Government Budget is at K12.9 billion. That is K900 million less than the 2016 Supplementary Budget.
The government believes the 2017 revenue will be K11.437 billion.
A larger portion will be sourced from taxation, grants and other revenue.
