IMF Staff Country Reports

Tonga: 2007 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion

Publication Date:

August 30, 2007

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This 2007 Article IV Consultation highlights that Tonga’s 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. While economic growth should return to positive, albeit low, levels in the medium term, there are lingering risks on the policy front that could derail efforts to restore stability, in particular those that might arise from pressures to increase public sector hiring. A further drop in remittances and terms of trade shocks could present significant pressures on official reserves.

Series:

Country Report No. 2007/297

Subject:

External debt Financial institutions Fiscal policy Fiscal stance Labor Loans Public debt Wages