Oceania Tonga Economy: An Overview of the Pacific Island's Economic Situation
Oceania Tonga is a small island nation located in the South Pacific Ocean, close to Fiji and New Zealand. It is a member of the Commonwealth of Nations and is also a member of the Pacific Islands Forum. Tonga has a population of around 110,000 people and its capital is Nuku'alofa. The economy of Tonga is largely dependent on agriculture, tourism, fishing, and remittances from Tongan expatriates living abroad.
Agriculture is the mainstay of the Tongan economy, accounting for around 40 percent of its GDP. The main crops grown in Tonga are root crops such as taro and yams, as well as fruits such as bananas, papayas, and pineapples. The country is also a major producer of copra, a type of dried coconut used for cooking oil, and fish.
Tourism is an important source of income for Tonga, with the country's beaches, coral reefs, and cultural attractions drawing in visitors from around the world. In 2018, Tonga welcomed around 330,000 visitors, generating a total of $110 million in tourism revenue.
The fishing industry is also a major contributor to the Tongan economy. The country has a number of fishing grounds, including the Tongan Exclusive Economic Zone, which is one of the largest in the Pacific. Tuna is the main catch, although other species such as marlin, swordfish, and wahoo are also caught.
Remittances from Tongan expatriates living abroad are also an important source of income for the country. These remittances make up around 10 percent of Tonga's GDP and are mainly sent from the United States, Australia, and New Zealand.
The Tongan economy has been growing steadily in recent years, with GDP growth averaging around 3.5 percent between 2011 and 2018. The country has also seen a decrease in poverty, with the poverty rate dropping from 40 percent in 2011 to 28 percent in 2018.
The Tongan government is actively working to improve the economy, with a focus on boosting economic growth, reducing poverty, and creating jobs. The government is also investing in infrastructure, such as roads, ports, and telecommunications, to improve the country's connectivity and competitiveness.
Overall, the economy of Tonga is in a relatively good position, with a strong agricultural sector, a growing tourism industry, and an increasing number of expatriates sending remittances back home. The Tongan government is working hard to ensure the country's continued economic growth and development.