Tonga: 2010 Article IV Consultation: Staff Report, Staff Supplement, and Public Information Notice on the Executive Board Discussion
IMF Staff Country Reports, May 13, 2010
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- Tonga: 2010 Article IV Consultation: Staff Report, Staff Supplement, and Public Information Notice on the Executive Board Discussion
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Bibliographic details
- Published: May 13, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455206384.002
Executive summary and key risks
- Tonga’s high debt and the apparent ineffectiveness of the monetary transmission mechanism constrain the authorities’ ability to support growth.
- In the near term, the strength of the global recovery is by no means assured, and there are multiple risks that could weaken prospects in both Europe and the United States.
- A further rise in world commodity and food prices would also hit Tonga hard, feeding through to inflation, growth, and the current account deficit.
- Tonga’s high public debt now poses a major risk to economic prospects.
Major themes and constraints
- Public debt and external debt
- High public and publicly-guaranteed external debt is identified as a major risk to economic prospects.
- Subject tags include: Public and publicly-guaranteed external debt, Public debt, External debt, debt, debt position.
- Monetary policy and banking sector
- The monetary transmission mechanism is described as apparently ineffective, constraining the authorities’ ability to support growth.
- Banking-related subjects include: Bank credit, Banking, Money, restart bank lending.
- External environment and channels of contagion
- Global recovery uncertainty: risks in Europe and the United States could weaken Tonga’s prospects.
- Commodity and food price shocks: rises would affect inflation, growth, and the current account deficit.
- Remittances and external flows
- Remittances are listed as a subject and keyword, indicating their relevance to Tonga’s balance of payments and growth dynamics.
Publication and metadata (as provided)
- Publication title: Tonga: 2010 Article IV Consultation: Staff Report, Staff Supplement, and Public Information Notice on the Executive Board Discussion
- Date: May 13, 2010
- Series: Country Report No. 2010/112
- Issue: 112
- Volume: 2010
- Pages: 62
- DOI: https://doi.org/10.5089/9781455206384.002
- Stock No: 1TONEA2010001
- ISBN: 9781455206384
- ISSN: 1934-7685
- Subject: Balance of payments, Bank credit, Banking, External debt, Money, Public and publicly-guaranteed external debt, Public debt, Remittances
- Keywords: Australia and New Zealand, Bank credit, CR, debt, debt position, fiscal policy development, fiscal policy stance, Global, IMF sustainability framework, ISCR, lending, near-term policy stance, Pacific Islands, private sector, Public and publicly-guaranteed external debt, Remittances, restart bank lending, Tonga
Source: Tonga: 2010 Article IV Consultation: Staff Report, Staff Supplement, and Public Information Notice on the Executive Board Discussion (May 13, 2010), IMF Staff Country Reports