The economic architecture of Tonga is substantial, anchored by a Gross Domestic Product (GDP) of approximately $518.18M
2022
. This places it as the 186th largest economy out of 192 countries measured, underscoring its significance on the world stage. On a per capita basis, GDP stands at $4.93K
2022
, while its GDP adjusted for Purchasing Power Parity (PPP) is estimated at $776.66M, offering a clearer picture of the population's domestic purchasing power. The economy is facing headwinds, marked by a contraction of -2.3%
2022
, while managing moderate inflation, with a CPI of 3.2%.
2024
On the global stage, Tonga's trade and financial dynamics reveal a complex interplay of international and domestic factors. The nation's economic activity is heavily reliant on foreign goods, running a considerable trade deficit with imports at 63.8% of GDP and exports at 11.6%
2022
. The investment climate attracts significant Foreign Direct Investment (FDI), with inflows constituting 0.56% of the economy
2022
. This performance positions the country 139th globally out of 187 nations, confirming its status as a competitive destination for foreign capital. Furthermore, personal remittances from its diaspora are a vital component of the economy, amounting to a substantial $256.87M annually
2024
. Fiscal capacity is adequate, with tax collections representing 23.8% of GDP, supporting core state functions.
2023
The socio-economic landscape is characterized by a Gross National Income (GNI) per capita of $5,260
2022
, ranking the nation 107th out of 191. This figure provides a comprehensive measure of the average income per person, reflecting the nation's overall economic well-being. The labor market demonstrates considerable strength, with a low unemployment rate of 2.2%, suggesting conditions close to full employment.
2024
A key feature of the workforce is its concentration in the services sector, which accounts for 46.3% of total employment
2023
. Despite its economic standing, poverty remains a salient issue, with 20.6% of the population living below the national poverty line
2021
. The country achieves a relatively equitable distribution of income, reflected in a low Gini index of 27.1.
2021
In the environmental and energy sectors, the nation's policies and outcomes reflect its developmental priorities. Energy consumption per capita stands at 543.448 kg of oil equivalent
2007
, a metric that often correlates with industrial activity and living standards. The energy portfolio remains heavily dependent on conventional sources, with renewables contributing a modest 2.3%
2022
. This commitment places it 26th among 191 countries, highlighting its relative progress in decarbonization. Total greenhouse gas emissions were last recorded at 342.1 tonnes of CO2 equivalent
2023
, a key factor in its national climate strategy and international obligations.

Key Economic Insights

Macroeconomic Health

Balancing growth, inflation, and employment remains the core challenge for economic stewardship.

Trade & Investment Profile

The economy is largely insular and consumption-driven, relying heavily on imports and showing limited integration into global export markets.

Social Equity & Distribution

Ensuring equitable distribution of economic gains is fundamental for long-term social and political stability.

Energy & Sustainability

A heavy dependence on fossil fuels poses significant long-term risks, including exposure to price volatility, energy insecurity, and climate change impacts.

More About This Country

Neighbors & Regional Peers

Note: The information on this page has been compiled from authoritative sources. While every effort is made to ensure accuracy, please note that some figures may not be current or entirely precise.