Cover IMF Staff Country Reports
Tonga: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Tonga
Author: International Monetary Fund. Asia and Pacific Dept
Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2016: Issue 178
Language:
English
Publication Date:
21 Jun 2016
DOI:
https://doi.org/10.5089/9781498311816.002
ISBN:
9781498311816
ISSN:
1934-7685
Pages:
66
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
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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.
Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund