Economy - overview The economy's base is agriculture, which contributes 32% to GDP. 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 industrial sector accounts for only 10% of GDP. Tourism is the primary source of hard currency earnings; the country also remains dependent on sizable external aid and remittances to offset its trade deficit. The economy grew at a declining rate in 1993-96. The government has been turning its attention to further development of the private sector and the reduction of the budget deficit.

GDP purchasing power parity - $239 million (1996 est.)

GDP - real growth rate 1% (1996 est.)

GDP - per capita purchasing power parity - $2,250 (1996 est.)

GDP - composition by sector
agriculture: 32%
industry: 10%
services: 58% (1996)

Inflation rate - consumer price index 2% (1997 est.)

Labor force
total: 36,665 (1994)
by occupation: agriculture 65% (1997 est.)

Unemployment rate 11.8% (FY93/94)

Budget
revenues: $49 million
expenditures: $120 million, including capital expenditures of $75 million (FY96/97 est.)

Industries tourism, fishing

Industrial production growth rate 1.9% (FY95/96)

Electricity - capacity 7,000 kW (1995)

Electricity - production 30 million kWh (1995)

Electricity - consumption per capita 284 kWh (1995)

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

Exports
total value: $15.3 million (f.o.b., 1996)
commodities: squash, fish, vanilla, root crops, coconut oil
partners: Japan 43%, US 19%, Canada 14%, NZ 5%, Australia 5% (1996 est.)

Imports
total value: $82.9 million (f.o.b., 1996)
commodities: food products, live animals, machinery and transport equipment, manufactures, fuels, chemicals
partners: NZ 34%, Australia 16%, US 10%, UK 8%, Japan 6% (1996 est.)

Debt - external $70 million (1995)

Economic aid
recipient: ODA, $37 million (1994)

Currency 1 pa'anga (T$) = 100 seniti

Exchange rates pa'anga (T$) per US$1 - 1.3112 (November 1997), 1.2323 (1996), 1.2709 (1995), 1.3202 (1994), 1.3841 (1993)

Fiscal year 1 July - 30 June

NOTE: The information regarding Tonga on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Tonga Economy 1998 information contained here. All suggestions for corrections of any errors about Tonga Economy 1998 should be addressed to the CIA.