Results for Economy and Trade

Tonga’s $15.2 million pa'anga loan repayment due to the EXIM Bank of China, during the 2020-21 financial year, has been deferred to 2021-22, the Minister of Finance, Hon. Tevita Lavemaau, confirmed yesterday 16 February.

The IMF has approved US$9.95 million under its Rapid Credit Facility, to help meet Tonga’s “urgent balance of payments and fiscal needs arising due to the COVID-19 pandemic and Cyclone Harold.” Tonga's early closure of external borders had helped avoid a worse economic outcome. “Nevertheless, an economic contraction is expected in FY2021.”

Tonga still faces challenges with digital adoption, particularly in business operations and even more so in the informal sector, which will need to be addressed for Tonga to fully realise the benefit of digital revolution, the Minister of Trade and Economic Development, Hon Samiu Vaipulu said this week, at the launching of a Tonga Trade Policy Framework and an eCommerce Readiness Assessment report.

Tonga can boost its foreign earnings significantly if we are able to export quality Tongan kava, the Prime Minister, Hon. Pohiva Tu‘i‘onetoa announced at the launching of the Tonga Kava Quality Standard on 25 June at the Ancient Tonga Centre, Fangaloto, Nuku'alofa. The two main suppliers of Tongan kava, Vava’u and ‘Eua Island, have already heavily invested in planting.

A Pacific tourism report on the CoViD-19 impact and recovery in the region projected NZD$3.1 billion losses if there were no tourists visiting seven Pacific Island countries, including Tonga, over a 12-month period.

Tonga needs to grow its small private sector in order to find a lasting solution for the country's fiscal and development challenges, reports the International Monetary Fund (IMF). Tonga will need to address the structural constraints and main deterrents to investment.

Tonga’s Official Foreign Reserve held by the National Reserve Bank was $457.5 million at the end of March, equivalent to 6.8 months of imports.

The Asian Development Bank (ADB) increased its response to the novel coronavirus disease pandemic by $13.5 billion, increasing its response package from $6.5 billion to $20 billion on Monday, 13 April.

The United Nations is calling for a $2.5 Trillion support package for developing countries to deal with the coronavirus shock. UNCTAD Secretary-General Mukhisa Kituyi said the economic fallout from the shock is ongoing and increasingly difficult to predict but there are clear indications that things will get much worse for developing economies before they get better.