The Tongan economy 2007

Abstract

Tonga's domestic economy is expected to return to positive growth in 2007/08 following a softening of economic activities in 2006/07 that was due largely to two major events: the wage settlement of 2005 and the civil disorder in Nuku?alofa on 16 November 2006. The Government has successfully steered the economy through each crisis. In order to maintain macroeconomic stability and business confidence, the following are being implemented?completion of the revenue reform program, concessionary finance for reconstruction of Nuku'alofa, pro-poor policies, and further public sector reforms. The most immediate priority is to restore social stability through law and order and political reform. Then the government can address its next highest priority, which is to make sure the needs of the productive sectors are treated equally with the needs of the social sectors. Investment in infrastructure is also urgently required.