Tonga: 2008 Article IV Consultation: Staff Report; Staff Supplement; and Public Information Notice on the Executive Board Discussion
IMF Staff Country Reports, July 31, 2008
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- Tonga: 2008 Article IV Consultation: Staff Report; Staff Supplement; and Public Information Notice on the Executive Board Discussion
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Bibliographic details
- Published: July 31, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451837506.002
Executive summary and outlook
- Publication date: July 31, 2008
- Pages: 53
- Core finding: Tonga’s economy has shown resilience in the aftermath of the November 2006 riots and is now on a path to recovery.
- Main driver of recovery: private investment.
- Donor role: donor-supported government reconstruction loans are expected to add further momentum to the recovery.
- External pressures: the global upswing in fuel and food prices has intensified pressure on inflation and external reserves.
- External position outlook: Tonga’s external position is expected to weaken, reflecting mainly the impact of rising food and fuel prices.
Key findings and economic indicators
- Resilience observed following November 2006 riots.
- Private investment identified as the key factor underpinning resilience.
- Donor-supported government reconstruction loans expected to contribute to recovery momentum.
- Rising global fuel and food prices are intensifying:
- pressure on inflation, and
- pressure on external reserves.
- Net effect: an expected weakening of Tonga’s external position mainly due to rising food and fuel prices.
Thematic focus and subjects covered
- Subject areas listed:
- External debt
- Financial institutions
- Fuel prices
- Inflation
- Loans
- Prices
- Public debt
- Keywords provided include:
- burden indicator, CR, debt, Fuel prices, Global, government contracting, Inflation, ISCR, Loans, NPV, Pacific Islands, real GDP, reconstruction loan, sustainability framework, Tonga, Tongan authorities