During the month of December 2016, overall domestic economic activities continued to support the NRBT’s expectation of stronger growth for 2016/17. The performance of all sectors was favourable except for the agricultural sector recording lower export volume, similar to December last year. Agricultural exports fell by 9.1% (58.2 tonnes) during the month but over the year it has increased by 11.2% (798 tonnes). Similar to previous years, exports in December have always been slightly lower than November, due to expectations that the domestic agricultural production is stronger in December to meet the high demand during the festive Christmas season. However, growth in the secondary sector was seen in business loans for manufacturing increasing by $0.1 million (0.8%) over the month and $0.8 million (18.3%) over the year, and housing loans increasing over the month by $2.7 million (1.8%). Additionally, consumption and production of electricity have increased in December 2016 by 0.2 million kilowatts and 0.3 million kilowatts respectively which is in line with the rise in the number of consumers by 87 households. The increased usage of air conditioning due to the hot summer weather may have also contributed to the higher consumption of electricity.

Indicators of local economic activities were mixed in November 2016 but overall, broadly positive. The closing of the squash season contributed largely to a fall in agricultural export volumes by 2,686.0 tonnes (80.7%). Increases in business loans for construction and individual housing loans continue to support the economic activities in the secondary sector. The performance in the services sector varied over the month. The container registrations rose by 286 containers (35.5%) in November 2016 led by rises in both business and private container registrations. This reflects expectation of an increase in consumption in preparation for the Christmas holidays. On the other hand, vehicle registrations declined in November by 20 vehicles (5.8%). The financial sector remained strong during the month and continued to record higher credit growth.

The indicators of local economic activities in September were mixed but overall, broadly positive. Higher export of yams and taro contributed to the rise of 77.6 tonnes (11.0%) in total agricultural export volumes over the month. Total marine exports, on the other hand, declined by 21.7 metric tons (8.4%), mainly driven by a decrease in exports of tuna and shark meat. The on-going construction activities continued to boost performance in the secondary sector, supported by an increase in private individuals’ housing loans and business loans for the manufacturing sector. The financial sector remained strong during the month and continued to record higher credit growth. The trade sector advanced over the month, coinciding with a rise in container registrations by 16 registrations (2.0%). Tourism sector however slowed, as reflected by a decrease in international arrivals by 1,873 passengers (18.1%) due to lower arrivals by cruise ships.

Domestic activity was mixed over August. The volume of agricultural exports was 707.3 tonnes, 19.7% less than the previous month reflecting a seasonal fall of yams exports in August. On the other hand, recent figures show that the export of butternut has begun. Butternut and squash pumpkin are the main drivers behind agricultural exports peaking in the last quarter every year. Marine exports declined slightly by 6% from July but remains at high levels, the third highest this year of 255.4 metric tons. Container registrations rose over the month by 8.5% driven by business shipments. With food such as meat being a main source of import for Tonga, the next few months will show how much of an impact the excise tax will have on container registrations for businesses. Construction of St. George’s Palace, Tano’a Hotel and the Faua wharf are ongoing.

Domestic economic activities were generally positive in July 2016. The primary and secondary productions recorded strong growth over the month. Agricultural export volumes performed exceptionally well in July with volumes increasing by 365.5 tonnes (71.1%), largely driven by a significant increase in the volume of cassava exports. In addition, marine exports also rose by 199.7 metric tons (274.4%), owing largely to higher tuna exports. Furthermore, higher credit disbursements to individual housing and business loans for construction and manufacturing supported the secondary activities well. The financial sector remained strong during the month and continued to record higher credit growth. The tourism and trade sectors on the other hand declined over the month. International arrivals decreased by 3,073 passengers (25.8%), also containers registered fell by 201 registrations (21.6%). This follows a strong growth in June 2016 due to celebrations taking place during the month.

Domestically, real sector performances continue to support the real GDP growth of 3.3% estimated for 2015/16 financial year. Total agricultural exports volume rose by 76.5 tonnes (17.5%) over the month owing to higher growth in the exports of late yams. Construction activities grew with rises in individual housing loans and business loans for construction and manufacturing, supporting a strong growth in the secondary production. The trade sector advanced, coinciding with a rise in container registrations by 65 registrations (7.5%) over the month. International arrivals also increased by 3,189 passengers (36.6%) indicating an active tourism sector. The financial sector remained strong during the month supported by continued credit growth.

Indicators of domestic activity over the month were mixed but overall, broadly positive. This was supported by strong performance in the secondary sector, namely construction, trade and credit growth. Lower export of root crops, fruits and vegetable products supported the decline of 326.6 tonnes (43.0%) in total agricultural export volumes over the month.

Activities in the domestic economy continued to grow supported by construction, trade, credit growth and the declining world food and oil prices. The domestic food prices had increased over the month, indicating a decline in the supply of domestically produced food.

The domestic economy in February bounced back after a downturn in the previous month. The rebound of the primary sector is in line with an increase in domestic food prices by 2.1% which is lower than a 2.6% rise in January. 

Overall economic activity in January 2016 showed a downturn following a busy month with Christmas festivities and other events. The primary sector slowed which was supported by an increase in domestic food prices reflecting lower primary production.