National Reserve Bank of Tonga

Seasonal decline in January container registrations

Container Registrations  January 2018

The total containers that were registered in January 2018 declined by 531 (42.3%), reflecting the usual trend at the beginning of the year following the festive season of December. This continued to reflect the seasonality of activities in the trade sector. Despite the decline, registrations remain above the average of container registrations in the month of January of the past five years. Both business and private containers decreased over the month by 34.1% and 49.8% respectively.

New Zealand continued to be the major originating source country for these containers, followed by Indonesia, Australia and Japan.

Total import payments (excluding oil) declined by $3.8 million (11.9%) over the month to a total of $28.3 million compared to $32.1 million last month. This coincided with the decrease in total container registrations. Payments for wholesale and retail imported commodities fell over the month by $4.3 million (16.3%) followed by a $0.06 million (3.0%) decrease in payments for construction materials. These outweighed the rise in payments for other imports such as medical and technological goods, and motor vehicles.

Over the year to January 2018, the total container registrations rose by 1,464 registrations (14.2%), driven by a 919 (19.7%) rise in private containers indicating a rise in the informal distribution sector. Additionally, business containers rose over the year by 545 registrations (9.6%) indicating a vibrant trade sector. Events and celebrations held during the year, and the increase in private constructions contributed to this annual growth. This was also consistent with a $25.8 million (8.5%) rise in import payments (excluding oil) as a result of higher import payments for wholesale & retail goods and miscellaneous goods (such as electrical infrastructure materials, medical, and technological goods).

The Reserve Bank’s projections for positive economic growth support higher imports and consequently container registrations will generally increase in the near term. On-going construction projects and new private residential constructions are anticipated to contribute to the rise. Spill over effects on the trade, tourism, construction sectors and other sectors in the economy are also anticipated.

Resources

Container Registration - January 2018  Released on 23 April 2018 |  136 KB - Download a copy of the full report.

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