Domestic economic activities were positive over the month. Agricultural export volumes grew by 34.6% mainly driven by taro exports and the addition of ‘butterkin’ squash to Tonga exports. Agricultural export receipts also doubled over the month supporting growth.

Domestically, on balance, the economy grew slightly amid mixed results from partial indicators of domestic activity. We expect that hotels and restaurants’ activity was adversely affected by a decline of 13.2 per cent in international arrivals over the month.

The domestic economy continues to show signs of subdued growth, with mixed signals from key sectors. July’s container registrations dropped, as conditions returned to business‐as‐usual following activity around preparations for national festivities. 

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.