## Tonga: 2025 Article IV Consultation-Press Release; and Staff Report

_IMF Staff Country Reports, November 10, 2025_

## Source details

**Canonical URL:** [Tonga: 2025 Article IV Consultation-Press Release; and Staff Report](https://www.imf.org/en/publications/cr/issues/2025/11/07/tonga-2025-article-iv-consultation-press-release-and-staff-report-571692)

## Other formats

- [Markdown version](/en/publications/cr/issues/2025/11/07/tonga-2025-article-iv-consultation-press-release-and-staff-report-571692/index.md)
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## Bibliographic details
- Published: November 10, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229030694.002

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### Economic outlook and drivers
- Tonga’s economy is expanding steadily.
- Expansion is driven by:
  - stronger-than-expected grant inflows,
  - elevated remittances,
  - a rebound in tourism,
  - fiscal support for the reconstruction.

### Inflation dynamics
- Headline inflation has declined below the reference rate, driven by lower food and energy prices.
- Core inflation has picked up, reflecting stronger domestic demand.

### Financial sector and risks
- Risks in the banking sector remain contained but have increased and require continued vigilance.

### Structural challenges and long-term outlook
- Tonga faces significant structural challenges including:
  - geographic remoteness,
  - a small and dispersed population,
  - high vulnerability to natural disasters.
- Persistent vulnerability discourages investment and incentivizes emigration, weighing on long-term growth prospects.
- Addressing these challenges requires policies and reforms to enhance resilience and growth potential, particularly in a global environment marred by heightened policy uncertainty.

### Publication metadata and subjects
- Subject: Debt sustainability, Debt sustainability analysis, External debt, Public debt
- Keywords: currency of Tonga, Debt sustainability, Debt sustainability analysis, exchange rate arrangement, fund holding, Global, Imf executive board, intervention currency, National reserve bank, Pacific Islands, safeguards assessment of the Nrbt
- Pages: 92
- Volume: 2025
- DOI: https://doi.org/10.5089/9798229030694.002
- Issue: 293
- Series: Country Report No. 2025/293
- Stock No: 1TONEA2025001
- ISBN: 9798229030694
- ISSN: 1934-7685

*Tonga: 2025 Article IV Consultation-Press Release; and Staff Report — IMF Staff Country Reports (November 10, 2025).*

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_Source: https://www.imf.org/en/publications/cr/issues/2025/11/07/tonga-2025-article-iv-consultation-press-release-and-staff-report-571692_