By DALE LUMA
THE national economy and the health care system will remain at risk well into next year because of the country’s very low Coronavirus (Covid-19) vaccination rate, an economist says.
Institute of National Affairs (INA) executive director Paul Barker predicts that the pandemic will continue.
In Parliament on Wednesday, Abau MP and former Health minister Sir Dr Puka Temu urged the Government to sanction mandatory vaccination for the people as the country’s vaccination rates remained the lowest in the world.
Barker said everyone was hoping, “as we were at this time last year, that next year will see a post-Covid economic recovery”.
“Much of the rest of the world has been able to partially put the pandemic behind them with the roll-out of vaccines, enabling some restoration of the global economy resulting in a surge in various commodity prices, including for energy, in the face of supply and transportation constraints,” he said.
“PNG unfortunately has seen its Covid-19 case numbers rise in 2021, and then surge from October, seemingly in response to the arrival of the Delta variant.
“With the very low vaccination rates and a weak healthcare system, the virus is liable to continue.”
Barker said it was not only as a health concern, but also a major constraint to economic activity “well into 2022, continuing also to restrain employment restoration and new jobs and investment”.
“Nevertheless, PNG has been able to gain some of the benefits, but also borne some costs, of the improved commodity prices, with stronger export earnings from gas and from vegetable oils, notably palm oil and coconut oil, and from copper and other minerals, and beverages, like coffee,” he said.
“The downside, is that the higher energy prices have both raised the cost of doing business in PNG and the cost of living, at a time when many businesses and households are already struggling with the weak economy, extended disruptions, not least from constant blackouts, continued foreign exchange shortages and other factors.”
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