The eastern half of the island of New Guinea - second largest in the world - was divided between Germany (north) and the UK (south) in 1885.

The latter area was transferred to Australia in 1902, which occupied the northern portion during World War I and continued to administer the combined areas until independence in 1975.

A nine-year secessionist revolt on the island of Bougainville ended in 1997 after claiming some 20,000 lives.

Source: CIA World Fact Book

Population: 5,795,887 (July 2007 est.)

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Age structure: 0-14 years: 37.6% (male 1,107,568/female 1,070,594) 15-64 years: 58.5% (male 1,745,385/female 1,643,830) 65 years and over: 3.9% (male 106,487/female 122,023) (2007 est.)

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Median age: total: 21.4 years male: 21.5 years female: 21.2 years (2007 est.)

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Population growth rate: 2.163% (2007 est.)

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Birth rate: 28.76 births/1,000 population (2007 est.)

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Death rate: 7.14 deaths/1,000 population (2007 est.)

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Net migration rate: 0 migrant(s)/1,000 population (2007 est.)

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Sex ratio: at birth: 1.05 male(s)/female under 15 years: 1.035 male(s)/female 15-64 years: 1.062 male(s)/female 65 years and over: 0.873 male(s)/female

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total population: 1.043 male(s)/female (2007 est.) Infant mortality rate: total: 48.46 deaths/1,000 live births male: 52.52 deaths/1,000 live births female: 44.2 deaths/1,000 live births (2007 est.)

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Life expectancy at birth: total population: 65.62 years male: 63.41 years female: 67.95 years (2007 est.)

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Total fertility rate: 3.79 children born/woman (2007 est.)

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HIV/AIDS - adult prevalence rate: 0.6% (2003 est.)

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HIV/AIDS - people living with HIV/AIDS: 60,000 (2005 est.)

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HIV/AIDS - deaths: 600 (2003 est.)

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Major infectious diseases: degree of risk: very high food or waterborne diseases: bacterial and protozoal diarrhea, hepatitis A, and typhoid fever vectorborne diseases: dengue fever and malaria are high risks in some locations (2007)

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Nationality: noun: Papua New Guinean(s) adjective: Papua New Guinean

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Ethnic groups: Melanesian, Papuan, Negrito, Micronesian, Polynesian

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Religions: Roman Catholic 22%, Lutheran 16%, Presbyterian/Methodist/London Missionary Society 8%, Anglican 5%, Evangelical Alliance 4%, Seventh-Day Adventist 1%, other Protestant 10%, indigenous beliefs 34%

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Languages: Melanesian Pidgin serves as the lingua franca, English spoken by 1%-2%, Motu spoken in Papua region note: 820 indigenous languages spoken (over one-tenth of the world's total)

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Literacy: definition: age 15 and over can read and write total population: 57.3% male: 63.4% female: 50.9% (2000 census)

Papua New Guinea is richly endowed with natural resources, but exploitation has been hampered by rugged terrain and the high cost of developing infrastructure. Agriculture provides a subsistence livelihood for 85% of the population. Mineral deposits, including oil, copper, and gold, account for nearly two-thirds of export earnings. The government of Prime Minister SOMARE has expended much of its energy remaining in power and should be the first government in decades to serve a full five-year term. The government also brought stability to the national budget, largely through expenditure control; however, it has relaxed spending constraints in 2006 and 2007 as elections approach. Numerous challenges still face the government including regaining investor confidence, restoring integrity to state institutions, promoting economic efficiency by privatizing moribund state institutions, and balancing relations with Australia, its former colonial ruler. Other socio-cultural challenges could upend the economy including a worsening HIV/Aids epidemic and chronic law and order and land tenure issues. Australia annually supplies $240 million in aid, which accounts for nearly 20% of the national budget.

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GDP (purchasing power parity): $15.41 billion (2006 est.)

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GDP (official exchange rate): $4.167 billion (2006 est.)

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GDP - real growth rate: 3.7% (2006 est.)

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GDP - per capita (PPP): $2,700 (2006 est.)

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GDP - composition by sector: agriculture: 35.7% industry: 37.1% services: 27.2% (2006 est.)

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Labor force: 3.477 million (2006 est.)

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Labor force - by occupation: agriculture: 85% industry: NA% services: NA%

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Unemployment rate: 2% up to 80% in urban areas (2004)

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Population below poverty line: 37% (2002 est.)

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Household income or consumption by percentage share: lowest 10%: 1.7% highest 10%: 40.5% (1996)

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Distribution of family income - Gini index: 50.9 (1996)

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Inflation rate (consumer prices): 2.5% (2006 est.)

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Investment (gross fixed): 19.2% of GDP (2006 est.)

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Budget: revenues: $2.155 billion expenditures: $2.166 billion; including capital expenditures of $344 million (2006 est.)

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Public debt: 53.7% of GDP (2006 est.)

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Agriculture - products: coffee, cocoa, copra, palm kernels, tea, sugar, rubber, sweet potatoes, fruit, vegetables, vanilla; shell fish, poultry, pork

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Industries: copra crushing, palm oil processing, plywood production, wood chip production; mining of gold, silver, and copper; crude oil production, petroleum refining; construction, tourism

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Industrial production growth rate: NA%

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Electricity - production: 3.358 billion kWh (2004)

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Electricity - consumption: 3.123 billion kWh (2004)

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Electricity - exports: 0 kWh (2004)

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Electricity - imports: 0 kWh (2004)

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Oil - production: 50,000 bbl/day (January 2006 est.)

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Oil - consumption: 18,000 bbl/day (January 2006 est.)

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Oil - exports: NA bbl/day

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Oil - imports: NA bbl/day

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Oil - proved reserves: 240 million bbl (1 January 2005 est.)

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Natural gas - production: 140 million cu m (2004 est.)

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Natural gas - consumption: 140 million cu m (2004 est.)

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Natural gas - exports: 0 cu m (2004 est.)

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Natural gas - imports: 0 cu m (2004 est.)

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Natural gas - proved reserves: 345.5 billion cu m (1 January 2005 est.)

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Current account balance: $661 million (2006 est.)

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Exports: $4.096 billion f.o.b. (2006 est.)

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Exports - commodities: oil, gold, copper ore, logs, palm oil, coffee, cocoa, crayfish, prawns

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Exports - partners: Australia 30.1%, Japan 8.1%, China 5.7% (2006)

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Imports: $1.686 billion f.o.b. (2006 est.)

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Imports - commodities: machinery and transport equipment, manufactured goods, food, fuels, chemicals

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Imports - partners: Australia 52.3%, Singapore 12.6%, China 5.9%, Japan 4.4% (2006)

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Reserves of foreign exchange and gold: $1.099 billion (2006 est.)

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Debt - external: $1.801 billion (2006 est.)

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Economic aid - recipient: $NA

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Currency (code): kina (PGK)

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Exchange rates: kina per US dollar - 3.0643 (2006), 3.08 (2005), 3.2225 (2004), 3.5635 (2003), 3.8952 (2002)

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Fiscal year: calendar year