The growth of Tonga's economy is forecast to slow next year as a large increase in spending and cost overruns for the Pacific Games begin to bite.
The Asian Development Bank said the Tongan economy grew by 3.1 percent this year, but that growth is expected to slow to only 2.6 percent next year.
According to Matangi Tonga, the bank said this is because of the vulnerabilities posed by natural disasters, as well as a large increase in spending and the cost of hosting the Pacific Games.
While construction and infrastructure development for the games will inject money into the economy, there is also a warning that the cost overruns will leave Tonga vulnerable.
However, the bank also says a number of political and economic reforms carried out by the government have improved its stability.
Tonga Reserve Bank Photo: Kaniva Pacific
