The global economy continues to navigate uncertainties, with a second Trump presidential term, China’s slowing growth, and geopolitical hotspots potentially sparking commodity price volatility, says a Papua New Guinea bank executive. Kina Bank managing director and chief executive officer Ivan Vidovich told the Prime Minister’s back-to-business breakfast in Port Moresby that the United States economy had already benefitted from stronger private sector confidence as the Trump administration delivered its deregulation agenda. “However, the impact of proposed tariffs might represent growth headwinds and pose a greater drag on the US economy in the second half of this year,” he said. “In China, growth is projected to moderate this year as the economy continues to face structural andcyclical challenges with weak domestic demand and property sector deleveraging. “Growth will be driven by fiscal stimulus measures, though softer local revenues and lower private investment may constrain progress. “We anticipate that the Kina-US dollar interbank rate will continue to adjust downwards through the Bank of PNG’s instituted crawling-peg regime. “In 2024, the BPNG provided intervention into the market on a regular basis which helped authorised foreign exchange dealers to clear import orders in a timely manner. “We observed that through the second half of 2024, delays for import orders reduced on average frommonths to weeks.” The National reports that Vidovich said as the re-adjustment of the Kina continued, “we anticipate another strong year for PNG’sagriculture exporters”. Global coffee prices hit a 50-year high just two months ago. Meanwhile, 2024 was also a strong year for cocoa growers in PNG. “Price increases are projected to be double digits in the coming year,” Vidovich said. “Gold prices are also set for another solid year trading above US$2,000 (about K8,019) an ounce, asgeopolitical tensions and uncertainty continue to keep gold prices elevated.” Vidovich said international hotspots such as the Middle East and Ukraine would remain potential disruptors to global supply chains. “Collectively, these geopolitical challenges underscore the fragility of global supply networks – which PNG is exposed to,” he said. “It is through sensible policy settings and close collaboration between the Government and private sector that we can help buffer PNG against these external risks. “Kina Bank remains committed to meeting the financial services needs of its customers through corebanking services, digital transformation and strategic partnerships,” he said.