Results for Economy

The three-days 32nd Annual Meeting of the South Pacific Central Bank Governors Annual Meeting ended in Nuku’alofa today, 17 November 2017.

Tonga’s public debt at the end of the current 2017 fiscal year is estimated to be equivalent to half of our Gross Domestic Product GDP (about TOP$444.7m), according to an updated version of the Asian Development Outlook ADO 2017, published by the Asian Development Bank at the end of September.

Tonga became a prospective member of the Asian Infrastructure Investment Bank (AIIB) in June.

The World Bank’s Board of Executive directors on April 27 approved US$5 Million to support Tonga’s Second Inclusive Growth Development Policy Operation.

Tonga faces a growing need to restrain public wage growth to decrease the share of wages in current spending, advises the Asian Development Bank’s Asian Development Outlook 2017.

A National Financial Inclusion Strategy (NFIS) or action plan to deliver financial services at affordable costs to Tongans is being developed by the Pacific Financial Inclusion Programme (PFIP) and the National Reserve Bank of Tonga (NRBT) for the first time.

The Asian Development Bank will increase its financial commitment to the Pacific Region in the coming years, said its Executive Director, Ms Swati Dandekar who visited Tonga with six Executive Directors from 25-29 October, on the 50th Anniversary of the ADB.

In its latest state of the economy report, the International Monetary Fund (IMF) has called on Tonga to improve its debt management, make broader reforms to increase revenue, and to effectively manage public spending. In the IMF's 2016 Article IV report released this week, Tonga was also encouraged to continue to seek concessional and grant financing for the South Pacific Games, while the report welcomed Tonga's efforts in curbing the wage bill and avoiding cost overruns. It urged Tonga to provide more opportunities for private sector development.

Tonga’s bankers, who fought to stop the imposition of a new Foreign Exchange Levy that came into effect today June 1, say the legislation is poorly drafted and imposes an unfair tax on the financial sector, which will be passed on to the community – particularly affecting remittances.