Tonga: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tonga

International Monetary Fund

No 2016/178, IMF Staff Country Reports from International Monetary Fund

Abstract: 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.

Keywords: ISCR; CR; right; government; Tonga; authority; Tongan authorities; government delivery; Tongan economy; accommodative monetary policy stance; financing gap; Tongan authority; Natural disasters; Credit; Global; Pacific Islands; Australia and New Zealand (search for similar items in EconPapers)
Pages: 66
Date: 2016-06-21
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