Countryguidebook 
Hainan, China
TONGA
COUNTRIES A-Z
Tonga Economy
Country Name: Kingdom of Tonga
Capital City: Nuku'alofa
Population: 116,921 (July 2007 est.)
Population Growth: 1.847% (2007 est.)
Currency: pa'anga (TOP)
Languages: Tongan, English
Area:
Inflation Rate: 11.1% (2005 est.)
Unemployment Rate: 13% (FY03/04)
Domain extension:
ECONOMIC DETAILS OF TONGA
ECONOMY OVERVIEW
Tonga has a small, open, South Pacific island economy. It has a narrow export base in agricultural goods. Squash, coconuts, bananas, and vanilla beans are the main crops, and agricultural exports make up two-thirds of total exports. The country must import a high proportion of its food, mainly from New Zealand. The country remains dependent on external aid and remittances from Tongan communities overseas to offset its trade deficit. Tourism is the second-largest source of hard currency earnings following remittances. The government is emphasizing the development of the private sector, especially the encouragement of investment, and is committing increased funds for health and education. Tonga has a reasonably sound basic infrastructure and well-developed social services. High unemployment among the young, a continuing upturn in inflation, pressures for democratic reform, and rising civil service expenditures are major issues facing the government.
Tonga has a small, open, South Pacific island economy. It has a narrow export base in agricultural goods. Squash, coconuts, bananas, and vanilla beans are the main crops, and agricultural exports make up two-thirds of total exports. The country must import a high proportion of its food, mainly from New Zealand. The country remains dependent on external aid and remittances from Tongan communities overseas to offset its trade deficit. Tourism is the second-largest source of hard currency earnings following remittances. The government is emphasizing the development of the private sector, especially the encouragement of investment, and is committing increased funds for health and education. Tonga has a reasonably sound basic infrastructure and well-developed social services. High unemployment among the young, a continuing upturn in inflation, pressures for democratic reform, and rising civil service expenditures are major issues facing the government.
GDP - purchasing power parity:
$178.5 million (2004 est.)
GDP - real growth rate:
2.4% (2005 est.)
GDP - per capita:
$2,200 (2005 est.)
GDP - by sector (agriculture):
agriculture: 23%
GDP - by sector (industry):
industry: 27%
GDP - by sector (services):
services: 50% (FY03/04 est.)
Export Partners:
US 41.8%, Japan 29.2%, NZ 8.6%, Fiji 4.2% (2006)
Import Partners:
Fiji 30%, NZ 27.5%, US 8.2%, Australia 7.5%, France 5.6%, UK 4.6% (2006)
Export Commodities:
squash, fish, vanilla beans, root crops
Import Commodities:
foodstuffs, machinery and transport equipment, fuels, chemicals
Exports Volume:
$34 million f.o.b. (2004 est.)
Imports Volume:
$122 million f.o.b. (2004 est.)
Labour Force:
33,910 (2003)
Unemployment Rate:
13% (FY03/04 est.)
Population below poverty line:
24% (FY03/04)
Inflation Rate:
11.1% (2005 est.)
Investment (gross fixed):
Public Debt:
Agriculture Products:
squash, coconuts, copra, bananas, vanilla beans, cocoa, coffee, ginger, black pepper; fish
Industries:
tourism, fishing
Industrial Production Growth Rate:
1% (2003 est.)
Electricity - production:
41 million kWh (2004)
Electricity - consumption:
38.13 million kWh (2004)
Electricity - exports:
0 kWh (2004)
Electricity - imports:
0 kWh (2004)
Oil - production:
0 bbl/day (2004 est.)
Oil - consumption:
900 bbl/day (2004 est.)
Oil - exports:
NA bbl/day
Oil - imports:
NA bbl/day
Natural gas - production:
0 cu m (2004 est.)
Natural gas - consumption:
Natural gas - exports:
Natural gas - imports:
Current Account Balance:
-$4.321 million (FY04/05)
Currency Code:
pa'anga (TOP)