Tonga: 2007 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion
IMF Staff Country Reports, August 30, 2007
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- Tonga: 2007 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion
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Bibliographic details
- Published: August 30, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451837483.002
Near-term growth outlook and macroeconomic shocks
- Real GDP growth is estimated to turn negative in FY06/07, declining by 3½ percent.
- The economy will continue to be subject to uncertainty and shocks.
- A further drop in remittances and terms of trade shocks could present significant pressures on official reserves.
Medium-term prospects and risks
- Economic growth is expected to return to positive, albeit low, levels in the medium term.
- Lingering risks on the policy front could derail efforts to restore stability.
- In particular, pressures to increase public sector hiring are highlighted as a key risk.
Policy-relevant areas and focal issues
- Fiscal policy and fiscal stance: concerns about measures that could undermine stability.
- Public debt and external debt: vulnerabilities tied to shocks and reserve pressures.
- Labor and wages: public sector hiring pressures noted as a destabilizing policy risk.
- Financial institutions and loans: considerations embedded in the assessment of stability and shock transmission.
- Broader thematic keywords listed by the report include real GDP, retrenchment program, sustainability analysis, Tongan authorities, and GDP deflator.
Source: Tonga: 2007 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion (August 30, 2007).
Content in this bundle
- _cr07297 - Executive Summary