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Economy of Tonga

Tonga is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Tonga may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Tonga exports around $0.01 billion and imports roughly $0.12 billion. 1.2% of population in the country are unemployed. The total number of unemployed people in Tonga is 1,308. In Tonga, 24% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Tonga is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 5.9% of GDP. The Gini Index of the country is 38.1. Tonga is experiencing good equality. The majority of citizens in Tonga fall within a narrow range of income, although some cases may show significant differences. Tonga has a Human Development Index (HDI) of 0.705. Tonga has an upper medium HDI score. This indicates that the majority of citizens will be able to attain a desirable life, though some citizens will not be able to achieve high living standards. The strength of legal rights index for Tonga is 10. Overall, it is considered to be rather strong - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders quite well; credit information is abundant and easily accessible.

Currency

The currency of Tonga is Tongan pa'anga. The plural form of the word Tongan pa'anga is paanga. The symbol used for this currency is T$, and it is abbreviated as TOP. The Tongan pa'anga is divided into Seniti; there are 100 in one pa'anga.

Credit rating

The depth of credit information index for Tonga is 3, which means that information is usually insufficient, although still able to provide a certain degree of clarity; accesibility is still a major problem.

Central bank

In Tonga, the institution that manages the state's currency, money supply, and interest rates is called National Reserve Bank of Tonga. The average deposit interest rate offered by local banks in Tonga is 2.8%.

Public debt

Tonga has a government debt of 48.4% of the country's Gross Domestic Product (GDP), as assessed in 2014.

Tax information

The corporate tax in Tonga is set at 25%. Personal income tax ranges from 0% to 20%, depending on your specific situation and income level. VAT in Tonga is 15%, and it is known as Sales Tax.

Finances

The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Tonga is $502 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Tonga was last recorded at $5 million. PPP in Tonga is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Tonga is 0 billion. Based on this statistic, Tonga is considered to have a small economy. Countries with small economies generally support less industries and opportunities for investment. However, worthwhile investment opportunities may be found. The Gross Domestic Product (GDP) per capita in Tonga was last recorded at $0 million. The average citizen in Tonga has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Tonga averaged 2.4% in 2014. According to this percentage, Tonga is currently experiencing modest growth. Countries that are experiencing modest growth offer safe opportunities for investment; their expanding economy indicates that businesses, jobs, and income will expand accordingly. To read more about financial information click on finances of Tonga.

Industry

Major industries in the country are tourism, construction, fishing. The total labor force of Tonga is 41,210 people, wherein 1.2% of population in the country are unemployed. The total number of unemployed people in Tonga is 1,308. The Industrial Production growth rate of Tonga is 2.5%.To read more about industrial information within Tonga click on industry of Tonga.

Agriculture

There are 144 km2 of arable land in Tonga, and it comprises 19% of the country's total territory. There are 249 km2 of cultivated land in Tonga. The country's major agricultural crops and products are squash, coconuts, copra, bananas, vanilla beans, cocoa, coffee, ginger, black pepper, fish.To read more about agriculture click on agriculture of Tonga.