{
  "title": "Tonga: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tonga",
  "publication": "IMF Staff Country Reports, November 25, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2024/11/25/tonga-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-558840",
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  "summary": "The 2024 Article IV Consultation discusses that Tonga’s economic activity has strengthened, bolstered by consistent remittance flows, continued tourism recovery, and robust construction activities. Inflationary pressures have substantially eased. After peaking at 14.",
  "sections": [
    {
      "heading": "Economic activity and drivers",
      "content": "- Economic activity has strengthened, bolstered by consistent remittance flows, continued tourism recovery, and robust construction activities.\n- Near-term baseline economic outlook remains favorable, appropriately supported by expansionary fiscal and monetary policy.\n- Large public investment projects and a rebound in agricultural output (as the effects of El Nino dissipate) are key contributors to domestic demand."
    },
    {
      "heading": "Inflation",
      "content": "- Headline inflation peaked at 14.1 percent in September 2022 and has since been normalizing.\n- Inflationary pressures have substantially eased."
    },
    {
      "heading": "Growth projections",
      "content": "- Real gross domestic product (GDP) growth is projected to accelerate to 2.4 percent in FY2025, mostly led by continued strength in domestic demand including large public investment projects and a rebound in agricultural output.\n- Tonga’s long-term growth is projected at 1.2 percent, reflecting structural constraints."
    },
    {
      "heading": "Medium- and long-term risks and constraints",
      "content": "- Medium-term growth prospects remain uneven.\n- Long-term constraints identified:\n  - Exposure to increasingly frequent natural disasters.\n  - Persistent loss of workers to emigration.\n  - Limited economies of scale due to geographical barriers."
    },
    {
      "heading": "Policy recommendations and structural priorities",
      "content": "- Implement structural reforms focused on:\n  - Bolstering disaster resilience.\n  - Advancing digital transformation.\n  - Strengthening governance frameworks to foster a conducive business environment.\n- These reforms are described as essential to meet Tonga’s development goals."
    },
    {
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      "content": "- Pages: 82\n- Series: Country Report No. 2024/326\n- Issue: 326\n- Volume: 2024\n- ISBN: 9798400293801\n- DOI: https://doi.org/10.5089/9798400293801.002\n\nSource: Tonga: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tonga (November 25, 2024).\n\n---\n\n Content in this bundle\n\n- 1tonea2024001-print-pdf\n  - 1tonea2024001-print-pdf (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1tonea2024001-print-pdf (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: November 25, 2024",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400293801.002",
    "Economic activity has strengthened, bolstered by consistent remittance flows, continued tourism recovery, and robust construction activities.",
    "Near-term baseline economic outlook remains favorable, appropriately supported by expansionary fiscal and monetary policy.",
    "Large public investment projects and a rebound in agricultural output (as the effects of El Nino dissipate) are key contributors to domestic demand.",
    "Headline inflation peaked at 14.1 percent in September 2022 and has since been normalizing.",
    "Inflationary pressures have substantially eased.",
    "Real gross domestic product (GDP) growth is projected to accelerate to 2.4 percent in FY2025, mostly led by continued strength in domestic demand including large public investment projects and a rebound in agricultural output.",
    "Tonga’s long-term growth is projected at 1.2 percent, reflecting structural constraints.",
    "Medium-term growth prospects remain uneven.",
    "Long-term constraints identified:",
    "Implement structural reforms focused on:",
    "These reforms are described as essential to meet Tonga’s development goals.",
    "Pages: 82",
    "Series: Country Report No. 2024/326",
    "Issue: 326",
    "Volume: 2024",
    "ISBN: 9798400293801",
    "DOI: https://doi.org/10.5089/9798400293801.002",
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