Tonga: Recent Economic Developments

May 27, 1997

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Tonga: Recent Economic Developments, (USA: International Monetary Fund, 1997) accessed November 22, 2024

Summary

This paper describes economic developments in Tonga during the 1990s. From 1993 to 1996, financial policies were quite expansionary. Following the licensing of two new banks, credit growth accelerated in 1994. The National Reserve Bank of Tonga initially adopted an accommodating stance, but in December 1995, tightened monetary policy significantly. Hampered by its poor profitability in the use of indirect monetary instruments, it relied on an increase in reserve requirements. Meanwhile, fiscal policy had added further to demand pressures with the recurrent budget surplus declining, owing to a cost-of-living adjustment to government wages.

Subject: Agroindustries, Banking, Commercial banks, Economic sectors, Exports, External debt, Imports, International trade, Public enterprises

Keywords: Agroindustries, Australia and New Zealand, Broad money, Commercial bank, CR, Debt service, Exchange rate, Exports, Imports, ISCR, Minimum lending rate, Private sector, Public enterprise, Public enterprises, Tongan authorities

Publication Details

Pages:

65
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 1997/040
Stock No:

1TONEA0011997
ISBN:

9781451837407
ISSN:

1934-7685

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