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Home > ADB forecasts 1.5% economic growth for Tonga in 2014

ADB forecasts 1.5% economic growth for Tonga in 2014 [1]

Nuku'alofa, Tonga

Thursday, April 3, 2014 - 21:51

The Tongan economy is expected to rebound during the 2014 Financial Year, according to the Asian Development Bank Economic Outlook for 2014.

A 1.5% economic growth is forecasted for 2014 due to a multi-million dollar financing of the upgrading of the Fua'amotu International Airport by the World Bank, and the financing of the reconstruction in the Ha'apai islands after Cyclone Ian in January, by development partners.

According to the ADB 2014 Economic Outlook the reconstruction work in Ha'apai will carry over into 2015 and is expected boost economic growth up to 2%.

This expected economic growth and an improvement in the flow of remittances is expected to narrow Tonga's current account deficit to 3.7% during the 2014 Financial Year, and 3.2% during the FY2015.

The inflation rate, however, is expected to accelerate to 2.0% during the 2014 and 2015 financial year.

The ADB 2014 Economic Outlook pointed that "Tourism and development partner-funded public infrastructure spending strongly influence growth in the South Pacific, the impact of  their fluctuations in recent years highlighting that domestic private sector contributions are limited."

Tonga [2]
Tonga economy [3]
ADB 2014 Economic Outlook [4]
Economy and Trade [5]

Source URL:https://matangitonga.to/2014/04/03/adb-forecasts-15-economic-growth-tonga-2014

Links
[1] https://matangitonga.to/2014/04/03/adb-forecasts-15-economic-growth-tonga-2014 [2] https://matangitonga.to/tag/tonga?page=1 [3] https://matangitonga.to/tag/tonga-economy?page=1 [4] https://matangitonga.to/tag/adb-2014-economic-outlook?page=1 [5] https://matangitonga.to/topic/economy-and-trade?page=1