Results for Economy and Trade

Trade challenges in the Pacific region, including Tonga, will be looked at by the World Trade Organization (WTO) at the Asian-Pacific Economic Cooperation (APEC) meeting this week, in Port Moresby, Papua New Guinea, 25-26 May. WTO Director General, Roberto Azevedo, expresses an opinion that more can be done to support economic growth and development in Tonga and across the Pacific. UPDATED.

Foreign currency exchange operations by unauthorized dealers has become a major concern for the National Reserve Bank of Tonga, who want to shut down the involvement of retail shops in Tonga offering the services illegally to their customers. They are hoping the public will report illegal activities.

New financial knowledge and skills have been developed in the Pacific Islands over the last seven years following initiatives by banks to broaden access to financial services for many more people. Ressa Price, the ANZ regional Executive Director for the Pacific, visiting Tonga on November 16, released a report on the the impact of the bank's MoneyMinded program that was launched in 2010 in a number of Pacific Islands countries,

The World Bank is convinced that its Pacific Possible PP initiatives will boost economic growth in the Pacific Island Countries PIC over the next 25 years.

A new customs duty and excise tax introduced last year has driven import prices up causing inflation to hit significantly high levels in Tonga. Annual inflation rose by 10% over the year to May 2017 - well above the National Reserve Bank of Tonga's reference rate of 5%.

An inspection shed for handicrafts of the Ministry of Agriculture, Food, Forest, Fisheries and PHAMA program was opened on Friday, June 16 to support people involved in the industry and increase exports.

Tonga needs to act fast in creating a plan to take advantage of the Pacific Agreement on Closer Economic Relations PACER Plus, between 12 Pacific Island Countries, plus Australia and New Zealand, said ‘Anisi Kulu Bloomfield, the Acting Chief Executive Officer of Tonga’s Ministry of Labour, Commerce and Trade.

Two key challenges that the Tongan government faces now are to manage carefully its wages bill and also its financing of the 2019 South Pacific Games related constructions. The World Bank also believes that Tonga should undergo an economic reform to shore up its revenue, “contain unproductive spending while boosting critical expenditures on health and education, and build up buffers against shocks.”

The International Monetary Fund (IMF) said in a preliminary statement this week that Tonga’s “economic activity is expanding and likely to remain relatively strong into the next couple of years”. However, the IMF found that there was a lack of recent statistical information available such as government finance, inflation, balance of payments, and national accounts data for their assessment of economic development.