Economy - overview The economy's base is agriculture, which contributes 36% to GDP. Squash,coconuts, bananas, and vanilla beans are the main crops, and agriculturalexports make up two-thirds of total exports. The country must import a highproportion of its food, mainly from New Zealand. The industrial sector accountsfor only 13% of GDP. Tourism is the primary source of hard currency earnings,but the country also remains dependent on sizable external aid and remittancesto offset its trade deficit. The economy continued to grow in 1993-95 largelybecause of a rise in squash exports, increased aid flows, and several largeconstruction projects, but contracted in 1995-96. The government is now turningits attention to further development of the private sector and the reductionof the budget deficit. Current proposals include selling Tongan citizenshipand passports to foreigners, leasing its seven equatorial satellite spots,and setting up a joint venture gas production facility with South Korea.

GDP purchasing power parity - $228 million (FY95/96 est.)

GDP - real growth rate -1.9% (FY95/96 est.)

GDP - per capita purchasing power parity - $2,140 (FY95/96 est.)

GDP - composition by sector
agriculture: 36%
industry: 13%
services: 51% (1994)

Inflation rate - consumer price index 1.4% (1995)

Labor force
total: 32,013 (1990 est.)
by occupation : agriculture 70% (1995 est.)

Unemployment rate NA%

Budget
revenues: $44 million
expenditures : $86 million, including capital expenditures of $NA (1995 est.)

Industries tourism, fishing

Industrial production growth rate NA%

Electricity - capacity 7,000 kW (1995)

Electricity - production 30 million kWh (1994)

Electricity - consumption per capita NA kWh

Agriculture - products coconuts, copra, bananas, vanilla beans, cocoa, coffee, ginger, blackpepper

Exports
total value : $15.25 million (f.o.b., 1995)
commodities: squash, vanilla, fish, root crops, coconut oil
partners: Japan 59%, US 14%, Australia 6%, NZ 6% (FY93/94)

Imports
total value: $80.3 million (c.i.f., 1995)
commodities : food products, live animals, machinery and transport equipment, manufactures,fuels, chemicals
partners: NZ 38%, Australia 28%, US 10%, Fiji 7.5% (1995)

Debt - external $48.4 million (FY93/94)

Economic aid
recipient: ODA, $7.8 million from Australia (FY96/97 est.); $3.9 million from NZ(FY95/96)

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

Exchange rates pa'anga (T$) per US$1 - 1.2127 (December 1996), 1.2323 (1996), 1.2709(1995), 1.3202 (1994), 1.3841 (1993), 1.3471 (1992)

Fiscal year 1 July - 30 June

NOTE: The information regarding Tonga on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Tonga Economy 1997 information contained here. All suggestions for corrections of any errors about Tonga Economy 1997 should be addressed to the CIA.