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Tonga’s economic growth for 2016-17 estimated at 3.6%

Radio & TV Tonga, Nuku’alofa, 03/02/2017

Tonga’s economic growth for 2016-17 is estimated at 3.6%.

The National Reserve Bank of Tonga’s Board after revising the real GDP says the activities in the domestic economy were generally positive.

The foreign reserves stood at almost TOP$379 million or about 10 months supply of imports.  The annual inflation rate is just over 6%, but is expected to fall to 4% at the beginning of the next financial year.

The Board also reports that the banking system remained sound with excess liquidity and almost TOP$179 million deposits and a 17% annual credit growth.

This was supported by the lower weighted lending rate at about 8% compared to the previous year.

Bank’s Governor, Dr Ngongo Kioa says the Board also approved changes to 3 of its policy measures to reflect the current economic fundaments.

He says this is to encourage the utilization of the excess liquidity in the banking system, increase lending in order to support economic growth, and strengthen the monetary policy transmission mechanisms.

© Radio and Television Tonga News