Indicators of domestic activity were mixed but overall, broadly positive. Building applications rose 17 per cent in June, flagging a boost to near‐term construction activity, supported by a rise in lending and new commitments for private construction.

Developments in Tonga’s real sector vary across key industries but broadly indicate slight improvement. The agricultural sector has sustained unfavourable weather conditions, while output from fisheries is expected to be soft. Construction activity is expanding, with latest data indicating a marked increase in public works approvals.