BSP: Positive outlook for 2025 final quarter

BSP General Manager Corporate Bank – Daniel Faunt.

The final quarter of the year looks broadly positive, says BSP Group GM for Corporate Bank – Daniel Faunt, when highlighting key insights from the September Quarter Economic Market Update.

BSP Financial Group Limited (BSP) reported that business activity remained steady through the third quarter of 2025, supported by strong economic fundamentals in Papua New Guinea and across the Pacific region.

Mr Faunt said that despite ongoing global policy shifts and geopolitical uncertainties, the Group remains confident in the resilience of PNG’s economy and the strength of its customers and communities.

“While we saw a slight softening in overall business sentiment compared to the previous quarter, the resilience of PNG’s economy continues to stand out. Key drivers of this performance included elevated commodity prices — particularly for coffee, cocoa, and gold — as well as stable domestic consumption and continued strength in the South Pacific tourism sector,” Mr Faunt said.

Looking ahead, BSP maintains a broadly positive outlook for the final quarter of 2025, despite mixed global signals. “While sentiment surveys suggest some caution, real indicators such as household spending and business investment continue to point to underlying strength,” Mr Faunt explained.

He noted that healthy household and corporate balance sheets, along with stable performance in mining and agriculture, continue to underpin business confidence. BSP also highlighted PNG’s strong track record of outperforming expectations, citing 2022 as an example when economic fundamentals exceeded sentiment.

“Announcements on major resource projects are expected to further boost business confidence heading into 2026 and beyond,” Mr Faunt added.

Across the Pacific, tourism-led economies are projected to maintain solid growth through the end of the year, supporting broader regional momentum.

As PNG continues to navigate a challenging global environment, BSP reaffirmed its commitment to supporting sustainable growth, financial inclusion, and community development.

“Our role as Papua New Guinea’s home-grown bank is to stand beside our people, our businesses, and our nation’s progress. We remain confident in PNG’s long-term potential and in the resilience of its economy,” Mr Faunt concluded.