The World Bank’s Board of Executive Directors approved on December 11, a US$30 million operation to support Tonga’s recovery following the impacts of COVID-19 and Cyclone Harold.
Tonga is currently responding to two major shocks to its economy, with COVID-19 having severely impacted Tonga’s tourism, retail and construction sectors – affecting at least 30 percent of the economy. In addition, the country was also hit hard by April’s Category 4 Tropical Cyclone Harold, which affected approximately 27 percent of the population, and is estimated to have caused damages and losses of more than 12 percent of the country’s total Gross Domestic Product (GDP).
In response, the Tonga: Supporting Recovery After Dual Shocks Development Policy Operation will support Tongan businesses, workers and vulnerable households to recover from these dual shocks, with the aim of building a more resilient, sustainable and inclusive economic recovery for Tonga. The funding supports social welfare payments from the Tongan Government to many of the country’s most vulnerable, including the elderly, people living with a disability, families facing challenges meeting school fee payments, and workers and business owners affected by the dual shocks.