The Statistics Department recently released Tonga’s 2016-17 Real Gross Domestic Product (GDP) of 5.0% reaching its highest growth since 1998-99. Over the month, recovery works from the destruction caused by Tropical Cyclone (TC) Gita contributed to driving domestic economic activities. Partial economic indicators were positive over the month. The total agricultural exports increased by 335.5 tonnes mainly driven by a rise in exported volume of root crops and coconuts. Activities in the secondary industry remained positive supported by loans to respective sectors in the industry. Individual housing and business manufacturing loans increased by 0.5% and 2.8% respectively. In the tertiary sector, total loans slightly rose by 0.9% over the month. Nonetheless, container registrations rose by 493 containers as both private and business containers increased by 339 and 154 respectively, reflecting the in-kind donations and picking up of trade activities following the cyclone. International air arrivals also increased by 9.0%.

Domestic economic activities in February 2018 were affected due to the devastation by Tropical Cyclone (TC) Gita, which would also be reflected in the economic activities of upcoming months. However, partial economic indicators were mixed over the month. The total agricultural exports declined by 210.7 tonnes mainly driven by a decrease in exported volume of root crops such as cassava and giant taro. Additionally, exported marine products (excluding aquarium products) rose by 10.4 tonnes as more tuna was exported during the month. Activities in the secondary sector remained positive. Individual housing and business construction loans increased whilst business manufacturing loans declined. In the tertiary sector, total loans slightly rose by 0.5% over the month. Nonetheless, container registrations decreased by 184 containers as both business and private containers declined by 14.0% and 39.1% respectively. Vehicle registrations also fell by 204 registrations, due mainly to lower registrations for cars and other light vehicles. This was followed by a 38.8% decline in air arrivals.

Monthly economic indicators mirrored usual trend in January of every year showing slower growth in economic activities. According to the Reserve Bank liaison program, the supply of root crops in the domestic market were abundant whilst the supply of local fruits and vegetables declined due to seasonality. The total agricultural export volume continued to fall over the month of January by 97.7 tonnes, due to a decrease in the export of coconuts and squash although the volume of exported root crops increased. Performance of the secondary sector slowed over the month as individual housing and business manufacturing loans declined. Business construction loans, on the contrary, slightly rose by 7.7%. The tertiary sector slightly improved over the month, supported by the rise in total lending particularly higher lending to the trade and tourism sectors which rose by 21.4% and 27.1% respectively. Although total air arrival passengers declined by 29.9%, travel receipts slightly rose to $10.2 million from $10.0 million last month.

The performance of all sectors of the domestic economy was favorable except for the agricultural sector recording lower export volume. The on-going construction activities continued to boost the performance of the secondary sector, which coincided with a 2.3% and 4.2% growth in individual housing loans and loans for business construction respectively. The tertiary sector improved over the month. Total lending rose by $16.4 million (3.9%). Total air arrivals increased by 64.9%, as people travelled for vacation and to spend Christmas with their respective families. The rise in total international arrivals is in line with a $3.1 million rise in travel receipts. In addition, total number of container registrations increased by 249 (24.8%), as both private and business containers rose by 40.0% and 11.4% respectively. Similar to previous years, total vehicle registrations rose by 142 during the month, due to higher light and heavy vehicles and cars registered. Electricity production slightly increased by 4.8% and 62 more customers were recorded during the month. Agricultural exports on the other hand declined by 56% largely due to the end of the squash season.

Partial indicators of domestic activity were mixed in November but overall, broadly positive. According to the Reserve Bank’s liaison program with growers in the domestic agricultural market, availability of crops during November was favorable compared to last month. Electricity consumption rose by 3.2%, and 79 more customers were recorded during the month. On-going construction activity continued to boost performance in the secondary sector, which coincided with a 1.0% growth in individual housing loans. The financial sector remained strong during the month, and lending increased by $2.3 million. On the other hand, other partial indicators in the tertiary sector declined. Total air arrivals declined by 1.9%, in line with a $3.2 million decrease in travel receipts. In addition, total number of container registrations decreased by 20 (2.0%), attributed to the lower number of business containers which outweighed the slight increase in private containers.

Domestic economic activities remained positive in October 2016 with mixed indicators. The total agricultural export volumes rose by 2,513.4 tonnes over the month. This is the highest total monthly exports on record since October 2013 reflecting the commencement of the squash season. The secondary sector remained strong, supported by rises in individual housing loans and business loans for the construction and manufacturing sectors. Vehicle registrations rose in October by 65 vehicles (23.1%), whilst container registrations slightly fell by 4 containers (0.5%).Activities in the financial sector were supported by higher credit growth during the month. Air arrivals declined in October however the arrival of the Costa Luminosa, the largest cruise ship to arrive in Tonga supported the tourism sector. Whale watching activities also continued to benefit this sector.

Indicators of domestic activity over the month of September were mixed. This was supported by strong performance in the agricultural exports which rose by 329.0 tonnes (36.7%) due to higher exports of squash, brown coconut, and watermelon. Additionally, lending to the agricultural sector increased by 1.4% over the month. On-going construction activities continued to boost performance in the secondary sector, which coincided with a 3.8% growth in business lending for construction and 1.5% increase in individual housing loans. On the other hand, economic activities in the tertiary sector slowed. Total air arrivals declined by 412 passengers (4.2%), in line with a $1.0 million decrease in travel receipts. In addition, total number of container registrations decreased by 96 (8.1%), due to a fall in both business and private containers. Additionally, marine exports also fell by 177.5 tonnes (64.8%).

The local economic activities were vibrant over the month of August. Total agricultural export volumes rose by 335.4 tonnes, reflecting the commencement of the squash season and higher export of cassava. This was supported by a 7.1% growth in lending to the agricultural sector. Ongoing construction activities continued to boost performance in the secondary sector, supported by a 0.7 million KwH rise in electricity consumption. Increase in business loans for manufacturing also supported this
sector’s expansion. The number of air arrivals rose by 527 passengers benefitting the activities in the tourism sector. The total number of container registrations increased by 377 registrations and 374 vehicles were registered in August, 46.4% and 34.1% higher than the previous month respectively. This echoed an active trade sector and spillover effects to the transportation sector.

Activities in the domestic economy were mixed in July. From the primary sector, the total volume of agricultural exports decreased by 189.4 tonnes (25.2%) due to a decline in almost all exported commodities. However, according to liaison with stakeholders in the domestic agricultural market, July was relatively more favourable compared to June and growth in lending to the agricultural sector continued to support growth in the sector. The secondary sector continued to show positive activities. Individual housing loans and business construction loans increased over the month by $2.0 million (1.2%) and $0.1 million (1.3%) respectively, which supported the construction sector. In the tertiary sector, international air arrivals declined by 3.0% followed by vehicle registrations decreasing by 21 vehicles (7.0%). Container registrations, on the other hand, increased by 12.3% as a result of higher number business container registrations which rose by 297 containers reflecting a vibrant trade sector during the month and spillover effects to the transportation sector.

Domestically, partial economic indicators indicated generally positive growth in June. From the primary sector, the total volume of agricultural exports decreased by 49.0 tonnes (6.1%) largely attributed to no export of watermelon during the month compared to the 93.0 tonnes exported in May 2017. According to liaison with stakeholders in the domestic agricultural market, the supply of vegetables and some root crops, except for yam, was relatively more favourable in May compared to June. Marine exports recorded the highest volume of exports for the year so far at 399.8 metric tonnes, as 6 foreign vessels unloaded their catch at Tonga’s port. The secondary sector also showed positive activities. Individual housing loans and business construction loans increased by $2.9 million (1.7%) and $0.5 million (5.0%) respectively over the month which supported the construction sector. In the tertiary sector, the number of container registrations fell by 45 containers (4.2%) over the month to 1,011 containers. Both private and business container registrations fell by 35 and 10 registrations respectively. Additionally, vehicle registrations declined by 45 vehicles (13.0%). International arrivals, on the other hand, increased by 14.4%, which is attributed to visitors attending the annual church conferences, as well as the whale watching season, supporting the tourism sector and spillover effects to other sectors such as the transportation and trade sectors.