Tonga Economy - 2005

Economy - overview:
Tonga, a small, open, South Pacific island economy, 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. 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 reasonably sound basic infrastructure and well-developed social services. High unemployment among the young and the continuing upturn in inflation are major issues facing the government.

GDP:
purchasing power parity - $244 million (2002 est.)

GDP - real growth rate:
1.5% (2002 est.)

GDP - per capita:
purchasing power parity - $2,300 (2002 est.)

GDP - composition by sector:
agriculture: 23%
industry: 13%
services: 64% (2002 est.)

Labor force:
33,910 (1996)

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

Unemployment rate:
13.3% (1996 est.)

Population below poverty line:
NA

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

Inflation rate (consumer prices):
10.3% (2002 est.)

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

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

Industries:
tourism, fishing

Industrial production growth rate:
8.6% (FY98/99)

Electricity - production:
24.79 million kWh (2002)

Electricity - consumption:
23.06 million kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
1,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Exports:
$27 million f.o.b. (2002 est.)

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

Exports - partners:
Japan 51.4%, US 24.9%, India 4.1% (2004)

Imports:
$86 million f.o.b. (2002 est.)

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

Imports - partners:
New Zealand 46.7%, Fiji 21.1%, Australia 10.3%, US 6.7% (2004)

Debt - external:
$63.4 million (2001)

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

Currency (code):
pa'anga (TOP)

Exchange rates:
pa'anga per US dollar - 1.9716 (2004), 2.142 (2003), 2.1952 (2002), 2.1236 (2001), 1.7585 (2000)