Tonga: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tonga
June 21, 2016
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This paper discusses recent economic developments, economic outlook, risks, and challenges in Tonga. The Tongan economy has been rebounding since a contraction in FY2013. Growth accelerated from 2.1 percent in FY2014 to 3.7 percent in FY2015, supported by construction, tourism, strong remittances, and strong private credit, notwithstanding weather-related disruptions to agricultural production. The FY2016 real GDP growth is projected to remain relatively strong at 3.1 percent, driven by a recovery in agriculture and an increase in construction activity in preparation for the South Pacific Games. However, a protracted period of slower growth in advanced and emerging market economies, particularly in Australia and New Zealand, could weigh on Tonga via aid, remittances, and tourism channels.
Subject: Banking, Credit, Environment, External debt, Money, Natural disasters, Public debt, Public financial management (PFM)
Keywords: accommodative monetary policy stance, Australia and New Zealand, authority, CR, Credit, financing gap, Global, government, government delivery, ISCR, Natural disasters, Pacific Islands, right, Tonga, Tongan authorities, Tongan authority, Tongan economy
Pages:
66
Volume:
2016
DOI:
Issue:
178
Series:
Country Report No. 2016/178
Stock No:
1TONEA2016001
ISBN:
9781498311816
ISSN:
1934-7685
