Sharing Period 6 Summing Up and Learning Tip
most of the population lives in rural communities based on the traditional village structure and dependent on subsistence farming supplemented by cash cropping.only 15－20% of papua new guineans live in the main urban areas of port moresby，lae，madang，mt hagan and goroka.economypng has a relatively small dual economy，comprising a formal and informal economy.the formal economy is dominated by large－scale resource projects，particularly in mining and petroleum，and provides a large proportion of government revenue.the informal economy supports 85% of the people through semi－subsistence agriculture.the formal sector employs around 15% of the workforce.png has an abundance of natural resources including：large reserves of minerals extensive forestry and fishery assets significant potential for agricultural expansion many beautiful locations with potential for ecological and cultural tourism.despite the potential of these resources，png's economic performance has fallen short of expectations.economic growth has not kept up with population growth and performance varies considerably from year to year.during ，png's economy grew because of buoyant commodity prices and good fiscal management by government.increased foreign reserves and a strengthened kina helped inflation and interest rates remain low.with moderate gdp growth，rising tax receipts and reduced government borrowing costs，the png government's fiscal deficit is expected to remain small，despite a modest surplus in .however，with weak medium term revenue prospects，png needs to consolidate and build on current economic and fiscal progress and provide social services and a regulatory framework to support broad based economic growth.png needs improved accountability and governance mechanisms，including public expenditure management and public sector reform，to promote and safeguard improved productivity.with mining and petroleum sector production forecast to decline from ，major challenges for the png government include making good use of existing revenue，expanding the non－mining sector and ensuring economic stability through continued political and social reforms.social indicatorspng's population has suffered significant declines in living standards in recent years due to worsening economic performance.although the country does not exhibit the widespread abject poverty present in some developing countries，poor health and social indicators show that poverty is a real problem.png's main social indicators，such as life expectancy and maternal and child mortality rates，show improvements since 1975，but are still well below the averages for lower middle income countries(lmics).