WASHINGTON: A team of the International Monetary Fund visited Nuku’alofa to conduct the 2015 Article IV consultation discussions.
The IMF team met with Prime Minister Honorable ‘Akilisi Pohiva, Minister for Finance and National Planning Honorable Dr. ‘Aisake Valu Eke, Governor of the National Reserve Bank of Tonga Dr. Sione Ngongo Kioa, and other senior government officials, as well as development partners and private sector representatives.
Yasuhisa Ojima, the team leader, said “We estimate that Tonga’s economy grew by around 2 percent in fiscal year (FY) 2013/14 (year ending June), driven by agriculture and construction, following a contraction in 2012/13 mainly caused by the completion of a large capital project. Inflation has remained moderate at around 0-3 percent in recent years, reflecting low global food prices and, more recently, a sharp decline in oil prices. The external position has strengthened thanks to grants and remittance inflows, which have bolstered international reserves.”
Ojima added, “Real GDP growth is expected to average 2-3 percent in FY2014/15 – FY2019/20. Although the progress of reconstruction in the aftermath of 2014 Cyclone Ian is slower than expected, the coronation scheduled for July 2015 and preparations for the 2019 South Pacific Games will support economic activity over the next few years. Meanwhile, inflation is projected to remain low, reflecting the weak outlook for global commodity prices.”
