Results for Economy and Trade

The Asian Development Bank (ADB) and the Government of Tonga signed a $10 million policy-based grant agreement today, 12 April, to help expedite economic recovery from disasters caused by natural hazards and health emergencies.

A new series of Tongan bank notes was launched today, 4 December, in commemoration of the official birthday of Tupou I - a national public holiday. HRH Prince Ata unveiled the new bank notes at a launch held by the National Reserve Bank of Tonga t the Fa’onelua Convention Centre in Nuku’alofa.

Although Tonga's economy is rebounding strongly from a major double shock in early 2022, Tonga is confronting important challenges to long-term growth posed by sustained worker outflows and increasingly frequent natural disasters, says the International Monetary Fund.

Growth in Tonga’s economy is projected to reach 2.5% in 2023 expanding further to 3.2% in 2024, according to the latest edition of the Asian Development Bank's economic report presented in Nuku'alofa today, 13 April. ADB Public Sector Economist, James Webb said, like its South Pacific neighbours, Tonga has faced an immensely difficult past three-years. Inflation is forecast to accelerate to 9.4% this year, with remittances providing some potential relief to households.

A new partnership in financial intelligence has been formed between the National Reserve Bank of Tonga and the Australian Transaction Reports and Analysis Centre, to help detect illicit financial activity.

The receipt of relief funds from the government’s development partners to support Tonga’s recovery from the Hunga Tonga-Hunga Ha’apai volcanic eruption and tsunami has boosted Tonga’s foreign reserves. The official foreign reserves held by the National Reserve Bank of Tongavin April 2022, had increased considerably by $22.6 million to (from March) to $884.0 million, and by over $204 million since April last year.

Higher imported and domestic prices have driven increasing inflation in Tonga. In the year to August 2021 inflation rose by 7.0%, the National Reserve Bank of Tonga reported. Annually, foreign reserves increased, resulting from more receipts of budget support, project funds, and remittances.

A multi-million dollar grant for the provision of a new tugboat for the Port of Nuku'alofa was signed by the Japanese Ambassador to Tonga HE Mr Kensaku Munenaga and the Prime Minister, Hon, Rev. Dr Pohiva Tu’i’onetoa at the Prime Minister’s Office, yesterday, 3 September 2021.

A petition that was tabled into Parliament to stop the construction of a restaurant/burger bar at the ocean swimming pool on the Touliki waterfront in the capital, was deferred for government to make a final decision. From the House by Pesi Fonua.