Activities in the domestic economy picked up over the month as reflected by partial economic indicators, suggesting a vibrant start for the 2018/19 financial year. Given the recent developments, the Reserve Bank’s outlook for strong domestic economic activity remains in the medium term.

The monthly headline inflation rate continued to decline over the month of July 2018 by 0.1% following a negative 2.5% in June 2018. This was largely attributed to favorable movements in the prices of both local and imported food over the month which outweighed a rise in various imported commodities. Read more in the Inflation report for July 2018.

As a partial indicator for the trade sector, the number of containers indicated strong trade activites over the month as it remained high. The total container registrations slightly declined over the month by 22 containers (2.1%) driven by a 3.8% and 0.5% fall in private and business containers respectively. Read the Container Registrations for June.

The monthly headline inflation rate recorded a negative 2.5%, driven by a negative 2.9 percentage points contribution from the domestic component of inflation which was partially offset by a 0.4 percentage point contribution from the imported component of inflation. Read more in the Inflation report for June 2018.

Total banks’ lending slightly declined over June bringing the total outstanding loan balance to $447.3 million. Higher bank deposits were recorded over June and over the year which resulted mainly from an increase in demand deposits of the Government, private sector and non-profit institutions. Read more in the Banking Sector Developments report for June 2018.

May 2018 was not a favorable month for exported agricultural commodities as the total agricultural exports decreased over the month by 353.7 tonnes (42.9%). The volume of exported root crops declined significantly by 348.8 tonnes. Read more in the Agricultural Exports Volumes report for May.

Indicators of economic activity suggest slowed growth over the month. However, activities in all sectors of Tonga’s economy supported the strong growth that is forecasted for 2017/18. The Reserve Bank will continue to closely monitor developments in the domestic and global economies to ensure financial and macroeconomic stability are maintained and to change its monetary policy setting where necessary to support its monetary policy objectives.

Children’s White Sunday, Mothers’ Day and Fathers’ Day always triggered a peak in total remittance receipts every year and a new high level of $35.1 million was reached in May, a $9.0 million (34.3%) rise from last month. Read more in the Remittances Report for May 2018.

An increase in receipts of wages and salaries, and the receipts from seasonal workers abroad had increased the total receipts for compensation of employees, which was higher compared to the same period of the last two years. Read more in the Remittances Report for April 2018.

The total agricultural exports continued on a favorable trend over the month increasing by 135.7 tonnes. This was mainly attributed to the harvest of various yam types and taro whose exports rose by 192.1 tonnes and 91.1 tonnes respectively during the month. Read more in the Agricultural Exports Volumes report for April.

In May 2018, the monthly headline inflation rate slowed to 0.1% from 0.4% in April 2018 and 0.2% in May 2017. The trend was largely contributed by the imported component of inflation. Read more in the Inflation report for May 2018.

The monthly inflation rate dropped from 6.6% over March 2018 to only 0.4% in April 2018. Lower monthly inflation rate was due to lower local food prices and a decline in the prices of fuel and imported household supplies. Read more in the Inflation report for April 2018.

Total banks’ lending rose over May also adding to the annual balance reaching a new record of $448.2 million. Total bank deposits increased over May and over the year to $596.0 million. Read more in the Banking Sector Developments report for May 2018.

Total banks’ lending increased over April and over the year. This resulted in total banks’ lending reaching a new record of $444.8 million. Total bank deposits fell over the month yet increased over the year to $585.5 million. Read more in the Banking Sector Developments report for April 2018.

It is an usual trend for the total container registrations to increase over the month of May each year due to the annual events that occur during the month and other festivities in the upcoming months. The total container registrations increased over the month of May by 105 containers. Read the Container Registrations for May.

The total container registrations decreased over the month by 91 containers (8.8%) as both business and private containers declined. However, the total containers recorded in April remained above the monthly average of 695 of the past five years. Read the Container Registrations for April.

Total vehicle registrations declined over the month of April by 86 registrations (25.9%), recording a total of 246 registrations. This is slightly higher than the monthly average of 206 vehicles in the past five years. Registrations for all individual vehicles declined during the month. Read more in the Vehicle Registration report for April.

Archive

 

Banknotes

Career

tra

You are here: Home News Economic Release