Economy - 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 offer 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. The government faces high unemployment among the young, moderate inflation, pressures for democratic reform, and rising civil service expenditures.
GDP (purchasing power parity):
$587 million (2017 est.)
$569.6 million (2016 est.)
$552.7 million (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 211
GDP (official exchange rate):
$437 million (2017 est.)
GDP - real growth rate:
3.1% (2017 est.)
3.1% (2016 est.)
3.5% (2015 est.)
country comparison to the world: 111
GDP - per capita (PPP):
$5,600 (2017 est.)
$5,500 (2016 est.)
$5,300 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 168
GDP - composition, by end use:
household consumption: 99.2%
government consumption: 20%
investment in fixed capital: 26.3%
investment in inventories: -2.7%
exports of goods and services: 18.7%
imports of goods and services: -61.5% (2017 est.)
GDP - composition, by sector of origin:
agriculture: 19.5%
industry: 20.8%
services: 59.8% (2017 est.)
Agriculture - products:
squash, coconuts, copra, bananas, vanilla beans, cocoa, coffee, sweet potatoes, cassava, taro and kava
Industries:
tourism, construction, fishing
Industrial production growth rate:
5% (2017 est.)
country comparison to the world: 44
Labor force:
33,800 (2011 est.)
country comparison to the world: 202
Labor force - by occupation:
agriculture: 27.5%
industry: 27.5%
services: 2,006% (2006 est.)
Unemployment rate:
1.1% (2011 est.)
1.1% (2006 est.)
country comparison to the world: 8
Population below poverty line:
24% (FY03/04 est.)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Budget:
revenues: $134.6 million
expenditures: $134.6 million (2017 est.)
Taxes and other revenues:
30.8% of GDP (2017 est.)
country comparison to the world: 77
Budget surplus (+) or deficit (-):
0% of GDP (2017 est.)
country comparison to the world: 35
Public debt:
45.1% of GDP (2013 est.)
46.5% of GDP (2012 est.)
country comparison to the world: 119
Fiscal year:
1 July - 30 June
Inflation rate (consumer prices):
7.5% (2017 est.)
2.6% (2016 est.)
country comparison to the world: 195
Commercial bank prime lending rate:
8.1% (31 December 2017 est.)
7.9% (31 December 2016 est.)
country comparison to the world: 107
Stock of narrow money:
$137.7 million (31 December 2017 est.)
$112.8 million (31 December 2016 est.)
country comparison to the world: 187
Stock of broad money:
$263.9 million (31 December 2017 est.)
$227.7 million (31 December 2016 est.)
country comparison to the world: 191
Stock of domestic credit:
$166.7 million (31 December 2017 est.)
$135.2 million (31 December 2016 est.)
country comparison to the world: 187
Market value of publicly traded shares:
$NA
Current account balance:
$-59 million (2017 est.)
$-53 million (2016 est.)
country comparison to the world: 72
Exports:
$18.2 million (2017 est.)
$19.4 million (2016 est.)
country comparison to the world: 214
Exports - commodities:
squash, fish, vanilla beans, root crops
Exports - partners:
Hong Kong 25.6%, Japan 15.1%, NZ 14.3%, US 13.5%, Australia 10%, Philippines 9.4% (2016)
Imports:
$320.7 million (2017 est.)
$266.6 million (2016 est.)
country comparison to the world: 196
Imports - commodities:
foodstuffs, machinery and transport equipment, fuels, chemicals
Imports - partners:
NZ 35.3%, Fiji 12.1%, Singapore 9.3%, China 8.4%, US 8%, Australia 7.6%, Japan 4.3% (2016)
Reserves of foreign exchange and gold:
$131.9 million (31 December 2017 est.)
$176.5 million (31 December 2016 est.)
country comparison to the world: 166
Debt - external:
$233.5 million (31 December 2017 est.)
$198.2 million (31 December 2016 est.)
country comparison to the world: 188
Stock of direct foreign investment - at home:
$127.2 million (31 December 2017 est.)
$117.2 million (31 December 2016 est.)
country comparison to the world: 130
Exchange rates:
pa'anga (TOP) per US dollar -
2.23 (2017 est.)
2.22 (2016 est.)
2.22 (2015 est.)
2.11 (2014 est.)
1.85 (2013 est.)