Tonga: 2006 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion

June 28, 2006

Preview Citation

Format: Chicago

Tonga: 2006 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion, (USA: International Monetary Fund, 2006) accessed September 20, 2024

Summary

Tonga’s economy has become increasingly vulnerable. Fiscal discipline has weakened, undermining macroeconomic stability and external viability. Medium-term prospects have deteriorated. Moreover, there are other serious downside risks to the fiscal outlook. Further monetary tightening in response to the wage settlement and the full flexibility of the exchange rate system are required. A larger and more dynamic private sector offering alternative employment opportunities would facilitate the downsizing of the public sector. There is a need to improve the reliability, coverage, and timeliness of statistics.

Subject: Capital spending, Civil service, Expenditure, Imports, International trade, Labor, Wage adjustments, Wage bargaining

Keywords: Asset sale, Australia and New Zealand, Capital account surplus, Capital spending, Civil service, CR, Credit development, Executive board assessment, Executive board discussion, Financing, Government operation, Imports, ISCR, Pacific Islands, Private sector, Private sector credit, Severance payment, Tongan authorities, Tongan political system, Wage adjustments, Wage bargaining

Publication Details

Pages:

55
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2006/241
Stock No:

1TONEA2006001
ISBN:

9781451837469
ISSN:

1934-7685

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