Tonga: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tonga
IMF Staff Country Reports, August 26, 2022
Source details
- Canonical URL
- Tonga: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tonga
Other formats
Bibliographic details
- Published: August 26, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400216855.002
Economic impact and near-term outlook
- Tonga’s nascent economic recovery following Tropical Cyclone Harold and border closures in early 2020 has been severely disrupted by:
- the Hunga Tonga–Hunga Haʻapai volcanic eruption, and
- the first local outbreak of COVID-19 at the start of 2022.
- Real GDP projections:
- Real GDP is projected to contract by 1.9 percent in FY2022 (July 2021–June 2022).
- Real GDP is projected to rebound by 3.2 percent in FY2023 with a gradual reopening of international borders.
- Authorities are augmenting reconstruction and restoration efforts, with support from the international community.
Key substantive themes and analytical focus
- Debt sustainability analysis
- Environment and climate resilience
- External debt and public debt management
- Monetary policy and monetary policy mix
- Revenue administration and strengthening tax capacity
- Natural disasters and disaster response as a priority area
- Role of Australia and New Zealand in regional context
- Engagement with the International Monetary Fund and international community support
Content in this bundle
- 1tonea2022001