Economy - overview Tonga has a small, open economy with 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. Tourism is the second largest source of hard currency earnings following remittances. The country remains dependent on external aid and remittances from Tongan communities overseas to offset its trade deficit. 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 reasonable basic infrastructure and well-developed social services.

GDP purchasing power parity - $225 million (2000 est.)

GDP - real growth rate 5.3% (2000 est.)

GDP - per capita purchasing power parity - $2,200 (2000 est.)

GDP - composition by sector
agriculture: 30%
industry: 10%
services: 60% (2001 est.)

Population below poverty line NA%

Household income or consumption by percentage share
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices) 9.4% (2001 est.)

Labor force 33,908 (1996)

Labor force - by occupation agriculture 65% (1997 est.)

Unemployment rate 13.3% (1996 est.)

Budget
revenues: $39.9 million
expenditures: $52.4 million, including capital expenditures of $1.9 million (FY99/00 est.)

Industries tourism, fishing

Industrial production growth rate 8.6% (FY98/99)

Electricity - production 30 million kWh (2000)

Electricity - production by source
fossil fuel: 100%
hydro: 0%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 27.9 million kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 0 kWh (2000)

Agriculture - products squash, coconuts, copra, bananas, vanilla beans, cocoa, coffee, ginger, black pepper; fish

Exports $9.3 million (f.o.b., 2000 est.)

Exports - commodities squash, fish, vanilla beans, root crops

Exports - partners Japan 50.4%, US 31.6%, NZ 4.1%, Australia 2.1%, Fiji 1.7% (2000 est.)

Imports $70 million (c.i.f., 2000 est.)

Imports - commodities foodstuffs, machinery and transport equipment, fuels, chemicals

Imports - partners New Zealand 29.8%, Japan 18.6%, Australia 12.7%, US 12.7%, Fiji 12.2% (2000 est.)

Debt - external $57.5 million (June 2001)

Economic aid - recipient Australia $5.5 million, New Zealand $2.3 million (FY01/02)

Currency pa'anga (TOP)

Currency code TOP

Exchange rates pa'anga per US dollar - 2.1920 (January 2002), 2.1236 (2001), 1.7585 (2000), 1.5991 (1999), 1.4920 (1998), 1.2635 (1997)

Fiscal year 1 July - 30 June

NOTE: The information regarding Tonga on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Tonga Economy 2002 information contained here. All suggestions for corrections of any errors about Tonga Economy 2002 should be addressed to the CIA.