Tonga/Economy

Economy of Tonga

An overview of key economic indicators. Select a category for detailed trends, charts, and insights.

Explore Economic Domains

Growth & Output

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GDP (USD)
$518.2M(2022)
GDP PPP (USD)
$776.7M(2022)
GDP per Capita (USD)
$4,933(2022)
GDP Growth (inflation-adjusted)
-2.3%(2022)
Inflation (CPI Annual %)
3.2%(2024)

Trade & Finance

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Exports (as share of GDP)
11.6%(2022)
Imports (as share of GDP)
63.8%(2022)
FDI Inflows (as share of GDP)
0.6%(2022)
Remittance Inflow (USD)
$256.9M(2024)
Tax Revenue (as share of GDP)
23.8%(2023)

Labor & Income

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Unemployment Rate
2.2%(2024)
Employment in Services
46.3%(2023)
Poverty Rate
20.6%(2021)
GINI Index
27.1(2021)
GNI per Capita (USD)
$5,260(2022)

Energy & Environment

Coming Soon
Energy Use per Capita
543 kg oil eq.(2007)
Renewable Energy Consumption (%)
2.3%(2022)

Economic Snapshot Overview

A summary of key economic indicators for Tonga

  • The economic architecture of Tonga is substantial, anchored by a Gross Domestic Product (GDP) of approximately $518.18M
    2022
    . This places it as the 185th largest economy out of 191 countries measured, underscoring its significance on the world stage. On a per capita basis, GDP stands at $4.93K
    2022
    , while its GDP in Purchasing Power Parity (PPP) terms is estimated at $776.66M, reflecting the population's domestic purchasing power. The economy is facing a contraction, with a negative growth rate of -2.3%
    2022
    , while managing moderate inflation, with a CPI of 3.2%
    2024
    .
  • On the global stage, the nation's trade and financial dynamics reveal a complex interplay of factors. The nation runs a trade deficit, with exports at 11.6% of GDP and imports at 63.8%
    2022
    . Foreign Direct Investment (FDI) inflows are significant, constituting 0.56% of the economy
    2022
    . This performance positions the country 138th globally out of 186 nations, indicating its relative attractiveness to foreign capital. Additionally, personal remittances received amount to a substantial $256.87M annually
    2024
    , highlighting the economic importance of its diaspora. Fiscal capacity is moderate, with tax revenue at 23.8% of GDP
    2023
    .
  • The socio-economic landscape is characterized by a Gross National Income (GNI) per capita of $5,260
    2022
    . Globally, this ranks the nation 106th out of 190 in terms of GNI per capita, providing a clear measure of its national wealth relative to others. The labor market is robust, with a low unemployment rate of 2.2%
    2024
    . The services sector is a primary driver of the labor market, accounting for 46.3% of total employment
    2023
    . Poverty remains a key issue, with 20.6% of the population living below the national poverty line
    2021
    . The country has a relatively equitable distribution of income, with a Gini index of 27.1
    2021
    .
  • On the environment and energy front, energy consumption per capita is 543.448 kg of oil equivalent
    2007
    . The energy mix is still heavily reliant on traditional sources, with renewables contributing 2.3%
    2022
    . Its commitment to clean energy places it 26th among 190 countries for its share of renewable energy consumption.

Key Economic Insights

Macroeconomic Health

Maintaining a balance between growth, inflation, and employment is the central challenge for economic policymakers.

Trade & Investment Profile

The economy is primarily driven by domestic demand, with limited exposure to global trade fluctuations but also fewer opportunities for export-led growth.

Social Equity & Distribution

Distributing the benefits of economic growth equitably is crucial for social cohesion and long-term stability.

Energy & Sustainability

Heavy reliance on fossil fuels creates significant long-term risks related to climate change, price volatility, and energy security.

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.