Tonga

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Introduction - Tonga:
Location - Tonga:
People - Tonga:
Government - Tonga:
Economy - 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.

Gdp purchasing power parity

$178.5 million (2004 est.)

Gdp official exchange rate

$244 million (2005 est.)

Gdp real growth rate

2.4% (2005 est.)

Gdp per capita ppp

$2,200 (2005 est.)

Gdp composition by sector

agriculture: 23%
industry: 27%
services: 50% (FY03/04 est.)

Labor force

33,910 (2003)

Labor force by occupation

agriculture: 65%
industry and services: 35% (1997 est.)

Unemployment rate

13% (FY03/04 est.)

Population below poverty line

24% (FY03/04)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate consumer prices

11.1% (2005 est.)

Budget

revenues: $56.97 million
expenditures: $83.88 million; including capital expenditures of $1.9 million (FY04/05)

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

Oil proved reserves

0 bbl

Natural gas production

0 cu m (2004 est.)

Natural gas consumption

0 cu m (2004 est.)

Current account balance

-$4.321 million (FY04/05)

Exports

$34 million f.o.b. (2004 est.)

Exports commodities

squash, fish, vanilla beans, root crops

Exports partners

US 41.8%, Japan 29.2%, NZ 8.6%, Fiji 4.2% (2006)

Imports

$122 million f.o.b. (2004 est.)

Imports commodities

foodstuffs, machinery and transport equipment, fuels, chemicals

Imports partners

Fiji 30%, NZ 27.5%, US 8.2%, Australia 7.5%, France 5.6%, UK 4.6% (2006)

Reserves of foreign exchange and gold

$40.83 million (yearend, FY04/05)

Debt external

$80.7 million (2004)

Economic aid recipient

$19.3 million (2004)

Currency code

paanga (TOP)

Exchange rates

paanga per US dollar - 2.0277 (2006), 1.96 (2005), 1.9716 (2004), 2.142 (2003), 2.1952 (2002)

Communications - Tonga:
Transportation - Tonga:
Military - Tonga:
This page was last updated on 16 September, 2007
Source: CIA >>>


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