Results for Economy and Trade

Announcing a 5.3% inflation rate for February 2006, Tonga's Ministry of Finance on April 5 concluded that while the cost of living is still increasing, it was good news compared to the double digit inflation figures of February last year.

As of November 2005 Tonga's official Foreign Reserve held by the National Reserve Bank of Tonga was $81.8 million, an amount equivalent to 4.3 months of imports of goods. The November Foreign Reserve was $0.6 million less than that of October.

Following the acceptance by government of the demands of Tonga's striking civil servants for a 60, 70, 80% salary rise on September 4, Tonga's Minister of Finance, Hon. Siosiua 'Utoikamanu has been attending development and finance meetings in New York, and recently in Barbados, in the West Indies.

Tonga's official Foreign Reserves held by the National Reserve Bank increased by $1.9 million in December 2004 to $93.4 million, an amount equivalent to 5.9 months of imports of goods.

The official Foreign Reserves held by the National Reserve Bank for October increased by $8.1 million from $79 million to $87.1 million, an amount equivalent to 5.4 months of imports of goods.

Tonga's official foreign reserves held by the National Reserve Bank for August, stood at $78.4 million, an amount equivalent to 4.8 months of imports of goods.

A new loan allocation for Tonga from the Asian Development Bank will be decided on early next year, said Rolf Eckermann, a member of an ADB Executive Directors delegation who visited Tonga this week.

Tonga is scheduled to become a member of the World Trade Organisation in early 2005, Moana Taukolo of the Tonga Ministry of Labour and Commerce, told a three-day National Seminar on WTO issues in Nuku'alofa early this month.

The elimination of trade protectionism by the World Trade Organisation, in its quest to establish a global economy will confront Tonga with a tremendous trade disadvantage, warned the Prince Regent, Crown Prince Tupouto'a when he opened a three-day National Seminar on WTO issues on July 19, at the National Reserve Bank building, Nuku'alofa.