Tonga, with a population of 106,858, is ranked 175th in population size, just behind Seychelles. Located in the South Pacific Ocean, Tonga covers 750 square kilometers, ranking 169th in total area, slightly smaller than Bahrain.
Tonga’s economic position in 2022 reflects a GDP of $488,000,000, ranking it at 183 globally. It falls behind Sao Tome and Principe, whose GDP stands at $542,686,976.457587. In terms of GDP per capita, Tonga’s figure is $4858, placing it at 113 in the world.
It lags behind Namibia, with a GDP per capita of $5031.11503. Despite facing challenges, Tonga continues to strive for economic growth and stability in the global market.
What are the economic activities of Tonga?
- Primary activities: 19.9% of GDP.
- Secondary activities: 20.3% of GDP.
- Tertiary activities: 59.8% of GDP.
Primary Sector of Tonga
The primary sector in Tonga, heavily reliant on agriculture, thrives due to the tropical climate and rich natural resources. With 48.61% of the land dedicated to agriculture, the country produces a diverse range of products including coconuts, pumpkins, cassava, sweet potatoes, and more.
Despite contributing 19.9% to the GDP, agriculture plays a significant role in the economy. The variety of crops and animal products not only sustains the sector but also supports livelihoods and cultural practices, highlighting its crucial importance to Tonga’s agricultural landscape.
Tonga’s diverse geological landscape provides abundant natural resources. Arable land supports agriculture, while rich fishing grounds sustain the economy. The primary sector thrives on these resources, contributing significantly to the country’s economic growth.
Secondary Sector of Tonga
What is the secondary sector or what are secondary activities?
The secondary sector involves industries that transform raw materials from primary activities into finished products for consumption. In Tonga, the main industrial products include construction materials, handicrafts, and processed agricultural goods like coconut oil and vanilla. These products are vital for both domestic consumption and export markets, contributing significantly to the country’s economy.
In 2023, Tonga’s manufactures exports accounted for a small percentage of the country’s total exports, indicating their relatively minor importance in driving the economy.
Tertiary sector of Tonga
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Tonga encompasses various services where individuals provide expertise and time to enhance productivity and meet needs. This sector involves intangible goods like advice, attention, and knowledge. Key tertiary activities in Tonga include healthcare and medical care, education and training, banking and finance, communication and information exchange, tourism and hospitality, and transportation and logistics. These services play a crucial role in driving the country’s economy and meeting the diverse needs of its population.
Among these, Tonga’s economy heavily relies on tourism, contributing significantly to its GDP. With 94,000 annual arrivals, tourism plays a vital role. The most popular destinations are the pristine beaches of Vava’u and the stunning Ha’amonga ‘a Maui trilithon in Tongatapu, attracting visitors seeking natural beauty and cultural immersion.
Another example of tertiary economic activity is the mobile cellular sector, with approximately 64,000 subscriptions, supporting technological growth. This connectivity enhances communication, fostering innovation and business development.
International Trade of Tonga
Import Activities of Tonga
Tonga’s import activities are of high importance, with total imports in 2023 reaching $251 million, accounting for 51.43% of the country’s GDP.
Tonga’s import activities are diverse, with top partners being Fiji, China, NZ, Australia, and the US. Key imports include refined petroleum, plastic products, poultry, and vehicles. Tonga relies on these imports for various sectors of its economy.
Exports Activities of Tonga
Tonga’s total exports in 2023 amounted to $12,800,000, with exports accounting for 2.62% of its GDP. With such a low percentage, export activities hold low importance in Tonga’s economy.
Tonga’s export activities are diversified, with fish, scrap copper, processed crustaceans, vegetables, and perfume plants being key commodities. The country’s major export partners include the US (31%), Australia (19%), New Zealand (12%), Hong Kong (8%), and Belgium (8%).
Tonga economy challenges in 2024
Tonga faces challenges in 2024 with its reliance on remittances, growing Chinese investments, and methamphetamine trade. The country’s economy is impacted by these factors, affecting its development and stability.
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