IMF Staff Country Reports

Tonga: Recent Economic Developments

May 27, 1997

Preview Citation

Format: Chicago

Tonga: Recent Economic Developments, (USA: International Monetary Fund, 1997) accessed September 27, 2024

Summary

This paper describes economic developments in Tonga during the 1990s. From 1993 to 1996, financial policies were quite expansionary. Following the licensing of two new banks, credit growth accelerated in 1994. The National Reserve Bank of Tonga initially adopted an accommodating stance, but in December 1995, tightened monetary policy significantly. Hampered by its poor profitability in the use of indirect monetary instruments, it relied on an increase in reserve requirements. Meanwhile, fiscal policy had added further to demand pressures with the recurrent budget surplus declining, owing to a cost-of-living adjustment to government wages.

Subject: Agroindustries, Banking, Commercial banks, Economic sectors, Exports, External debt, Imports, International trade, Public enterprises

Keywords: Agroindustries, Australia and New Zealand, Broad money, Commercial bank, CR, Debt service, Exchange rate, Exports, Imports, ISCR, Minimum lending rate, Private sector, Public enterprise, Public enterprises, Tongan authorities

Publication Details

  • Pages:

    65

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 1997/040

  • Stock No:

    1TONEA0011997

  • ISBN:

    9781451837407

  • ISSN:

    1934-7685

You May Also Be Interested In...

Chinese Banks and Their EMDE Borrowers: Have Their Relationships Changed in Times of Geoeconomic Fragmentation?

September 23, 2024

Togo: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Togo

September 23, 2024

Systemic Implications of Financial Inclusion

September 20, 2024

Rising Temperature, Nuanced Effects: Evidence from Seasonal and Sectoral Data

September 20, 2024