Tonga : 2009 article IV consultation : staff report : staff supplement : public information notice on the Executive Board discussion : and statement by the Executive Director for Tonga
1. Tonga is a small open economy vulnerable to domestic and external shocks. Domestic political disturbances in 2006 caused widespread damage in the capital, Nuku'alofa, and GDP contracted by around 1 3/4 percent in 2006/07.1 2 The economy rebounded by 2 1/2 percent the following year, leading up to the coronation of a new king in August 2008. However, given its reliance on imports (41 percent of GDP in 07/08) and remittances (31 percent of GDP) global economic developments over the last year have, in common with the rest of the Pacific (Box 1) renewed pressure on the economy
