Macro - Country Economic Forecasts - Tonga

Macro - Country Economic Forecasts - Tonga

We now expect Tonga's GDP to grow 3.9% in FY2024, up from our previous forecast of 3.6%, due to strong remittance receipts and inflation falling faster than expected. Development grants and fiscal policy continue to support reconstruction efforts following the volcanic eruption last year. However, we don't see the tourism sector fully recovering to pre-pandemic activity until 2026.