National Reserve Bank of Tonga

Registrations fall following coronation festivities

Registrations fall following coronation festivities

The total number of container registrations fell by 37.6% over the month of July, indicating the end of coronation festivities and other special events. This coincides with a fall in import payments, as well as business and household loans. Contrastingly, the annual number of total container registrations increased by 18.7%. This could be due to more economic activity in relation to the scheduled events which occurred over July 2015 in comparison to July 2014. In addition, there has been an evident increase in roadside stalls and fairs which indicates an active informal sector. Moreover, banking data show that import payments increased by 17.5% which coincides with the yearly increase in total container registrations.

On the outlook, the NRBT expects imports and consequentially container registrations to generally increase in this current financial year. This is supported by liaison discussions with the transport sector which expects more imports of vehicle parts due to high demand. Additionally, on-going projects such as the construction of the St. George Palace and renovation of the Tanoa Hotel are anticipated to contribute to the rise. Spillover effects on the trade, tourism and construction sectors are also expected. However, higher imports could possibly exert downward pressure on the foreign reserves. The NRBT will continue to closely monitor the country’s economic and financial conditions in order to maintain an adequate level of foreign reserves and promote price stability.