Tonga Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Tonga has a small, open island economy and is the last constitutional monarchy among the Pacific Island countries. It has a narrow export base in agricultural goods. Squash, vanilla beans, and yams are the main crops. Agricultural exports, including fish, make up two-thirds of total exports. Tourism is the second-largest source of hard currency earnings following remittances. Tonga had 53,800 visitors in 2015. The country must import a high proportion of its food, mainly from New Zealand.

 

The country remains dependent on external aid and remittances from overseas Tongans to offset its trade deficit. The government is emphasizing the development of the private sector, encouraging investment, and is committing increased funds for health care and education. Tonga's English-speaking and educated workforce offers a viable labor market, and the tropical climate provides fertile soil. Renewable energy and deep-sea mining also offer opportunities for investment.

 

Tonga has a reasonably sound basic infrastructure and well developed social services. But the government faces high unemployment among the young, moderate inflation, pressures for democratic reform, and rising civil service expenditures.

Real GDP (purchasing power parity)

$670 million (2019 est.)

$660 million (2018 est.)

$660 million (2017 est.)

note: data are in 2017 dollars

Real GDP growth rate

2.5% (2017 est.)

4.2% (2016 est.)

3.5% (2015 est.)

Real GDP per capita

$6,400 (2019 est.) note: data are in 2017 dollars

$6,400 (2018 est.) note: data are in 2017 dollars

$6,472 (2017 est.)

GDP (official exchange rate)

$455 million (2017 est.)

Inflation rate (consumer prices)

7.4% (2017 est.)

2.6% (2016 est.)

GDP - composition, by sector of origin

agriculture: 19.9% (2017 est.)

industry: 20.3% (2017 est.)

services: 59.8% (2017 est.)

GDP - composition, by end use

household consumption: 99.4% (2017 est.)

government consumption: 21.9% (2017 est.)

investment in fixed capital: 24.1% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 22.8% (2017 est.)

imports of goods and services: -68.5% (2017 est.)

Agricultural products

coconuts, gourds, cassava, sweet potatoes, vegetables, yams, taro, roots/tubers nes, plantains, lemons/limes

Industries

tourism, construction, fishing

Industrial production growth rate

5% (2017 est.)

Labor force

33,800 (2011 est.)

Labor force - by occupation

agriculture: 2,006% (2006 est.)

industry: 27.5% (2006 est.)

services: 2,006% (2006 est.)

Unemployment rate

1.1% (2011 est.)

1.1% (2006)

Youth unemployment rate (ages 15-24)

total: 6.7%

male: 3.4%

female: 11.7% (2018)

Population below poverty line

22.5% (2010 est.)

Gini Index coefficient - distribution of family income

37.6 (2015 est.)

Household income or consumption by percentage share

lowest 10%: NA

highest 10%: NA

Budget

revenues: 181.2 million (2017 est.)

expenditures: 181.2 million (2017 est.)

Budget surplus (+) or deficit (-)

0% (of GDP) (2017 est.)

Public debt

48% of GDP (FY2017 est.)

51.8% of GDP (FY2016 est.)

Taxes and other revenues

39.8% (of GDP) (2017 est.)

Fiscal year

1 July - 30 June

Current account balance

-$53 million (2017 est.)

-$30 million (2016 est.)

Exports

$90 million (2020 est.) note: data are in current year dollars

$110 million (2019 est.) note: data are in current year dollars

$100 million (2018 est.) note: data are in current year dollars

Exports - partners

United States 38%, South Korea 18%, Australia 14%, New Zealand 14%, Japan 6%,  (2019)

Exports - commodities

squash, fish, various fruits and nuts, antiques, coral and shells (2019)

Imports

$300 million (2020 est.) note: data are in current year dollars

$330 million (2019 est.) note: data are in current year dollars

$320 million (2018 est.) note: data are in current year dollars

Imports - partners

Fiji 29%, New Zealand 23%, China 14%, United States 8%, Australia 6%, Japan 6% (2019)

Imports - commodities

refined petroleum, poultry meats, audio equipment, mutton, goat meat, broadcasting equipment (2019)

Reserves of foreign exchange and gold

$198.5 million (31 December 2017 est.)

$176.5 million (31 December 2016 est.)

Debt - external

$189.9 million (31 December 2017 est.)

$198.2 million (31 December 2016 est.)

Exchange rates

pa'anga (TOP) per US dollar -

2.27015 (2020 est.)

2.29095 (2019 est.)

2.22717 (2018 est.)

2.106 (2014 est.)

1.847 (2013 est.)

NOTE: The information regarding Tonga on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Tonga 2022 information contained here. All suggestions for corrections of any errors about Tonga 2022 should be addressed to the CIA or the source cited on each page.