Sectoral performances in the local economy were mixed over the month. Total agricultural export volumes rose by 432.5 tonnes, reflecting the commencement of the squash season and higher export of root crops. On-going construction activities continued to boost performance in the secondary sector, supported by a rise in business loans for construction and individual housing loans.

The total vehicle registrations declined over the month of June by 90 registrations (23.0%), recording a total of 301 registrations. This is higher than the monthly average of 231 vehicles in the past five years. Read more in the Vehicle Registration report for June 2018.

The registrations of new vehicles increased over the month for all types of automobiles which indicates strong activities in the transportation sector during May 2018. The total vehicle registrations rose over the month by 145 registrations (58.9%) Read more in the Vehicle Registration report for May 2018.

The total volume of agricultural exports declined over the month by 39.3 tonnes (8.3%) due to the seaonality of local produce and the damages of cyclone Gita on root crops in February 2018. Read more in the Agricultural Exports Volumes report for June 2018.

The Reserve Bank expects the volume of fisheries export to decline in the near term due to less foreign vessels with higher operation capacity which are available to fish the Tongan waters. Read more in the Marine Exports Volume for April 2018.

The total exported marine products significantly rose over the month by 73.1 metric tons to a total 81.4 tonnes. This was attributed to foreign fishing vessel which returned with their catch for export. Read more in the Marine Exports Volume for May 2018.

The total aquarium exports increased by 84.0% over the month of June 2018. Higher exports over the month was due to a rise in all types of exported aquarium products which includes invertebrate, live hard and soft coral, shellfish and live fish. Read more in the Marine Exports Volume for June 2018.

The total remittance receipts for June 2018 remained above $30 million at $30.5 million. The events during the month like the annual church conferences contributed to maintain the high remittances level in June. Read more in the Remittances Report for June 2018.

In June 2018, the balance of the overall OET recorded the highest surplus since January 2013 of $26.8 million. As a result, the official foreign reserves rose to a record high of $468.7 million, which is equivalent to 7.9 months of import cover. Find out more in the Overseas Exchange Transactions report for June 2018.

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.






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