Tonga profile

Demography and Health

Tonga is a very small nation by global population standards, with about 104,175 people in 2024, ranking around 192nd in the world by population. This tiny scale shapes almost every aspect of its development, including service delivery, labor markets, and domestic markets. The country has a relatively high birth rate for a small population: 23.1 births per 1,000 people in 2023, and a death rate of 6.44 per 1,000 people in 2023, suggesting ongoing natural population growth but a rising need for health and family planning services alongside aging dynamics. Life expectancy at birth is 72.9 years (2023), a marker of reasonable overall health outcomes for a small Pacific island nation, yet still leaving room for improvements in maternal and child health. The under-5 mortality rate is 9.9 per 1,000 live births (2023), indicating that child health outcomes are improving but not yet at the best regional benchmarks. Net migration is negative, with about 2,149 people leaving in 2024, signaling a persistent outflow of skills and labor that can influence demographics and long-run growth. Poverty affects about 20.6% of the population under national lines (2021), highlighting vulnerabilities that health and social protection policies need to address. Health financing shows some commitment: current health expenditure is 8.14% of GDP (2022), and domestic general government health expenditure per capita, PPP is about 247 international dollars (2021), with physicians at 1.01 per 1,000 people (2021). Taken together, Tonga’s demography points to a young, growing population under pressure from out-migration and poverty, with a health system that is progressing but still facing gaps in access and outcomes that require sustained investment and targeted programs.

Economy

Tonga’s economy is characterized by a very small, open, and import-dependent structure. GDP per capita stands at about 4,864 current US dollars in 2023, with a purchasing power parity (PPP) measure of roughly 7,853 international dollars, underscoring a modest standard of living by global comparison. The labor market appears tight on headline measures, with unemployment listed at 2.11% in 2021, though this low figure may reflect data limitations or a sizeable informal sector common in small economies rather than strong formal employment creation. Inflation is moderate at 3.18% in 2024, suggesting reasonable price stability in a context of global price volatility. Tonga’s economy relies heavily on trade and external receipts, as evidenced by exports of goods and services at 18.8% of GDP in 2023 and imports at a substantial 75.4% of GDP, signaling a high import dependency and a limited domestic production base. The current account extended deficit of 3.91% of GDP in 2024 indicates the nation finances its consumption and investment largely through external capital or reserves, making it sensitive to shifts in foreign demand and financing conditions. Poverty persists at 20.6% of the population (2021), underlining that economic benefits are not yet widely shared. Foreign direct investment remains modest, at about 0.97% of GDP in 2023, reflecting a cautious investment climate. Overall, Tonga’s economy shows resilience but remains constrained by its tiny scale, narrow export base, and vulnerability to external shocks, with ample room to deepen diversification, enhance productivity, and improve inclusive growth through targeted investments in people and infrastructure.

Trade and Investment

Tonga’s external trade profile reveals a pronounced openness skewed toward consumption and import reliance. Exports of goods and services account for 18.8% of GDP in 2023, while imports make up a large 75.4% of GDP in the same year, illustrating a substantial trade gap and dependence on external inputs for consumption and basic goods. The current account balance in 2024 shows a deficit of 3.91% of GDP, consistent with high import demand and limited export diversification. Foreign direct investment, net inflows, stand modestly at 0.968% of GDP in 2023, signaling limited inflows that could unlock productivity gains, technology transfer, and job creation. Governance indicators intersect with trade dynamics: regulatory quality is negative (-0.393 in 2023, rank 122) and control of corruption is also negative (-0.308, rank 102), which can constrain the speed and efficiency of business registrations, licensing, and investment climate reforms. Yet, political stability is comparatively strong (political stability and absence of violence/terrorism around 1.09 in 2023, rank 17), offering a favorable baseline for trade negotiations and policy continuity. The combination of high import dependence, modest export performance, and limited investment inflows suggests Tonga could benefit from targeted reforms to improve the business environment, expand export-oriented sectors (such as services and niche agricultural products), and attract higher-quality foreign direct investment that supports productivity and resilience.

Governance and Institutions

Tonga presents a mixed governance portrait. On the positive side, political stability and absence of violence/terrorism score a high value of 1.09 (2023) with a global rank around 17, indicating a stable political environment that supports policy continuity and public service delivery. However, several core institutional dimensions show weaknesses. Regulatory quality is negative (-0.393, 2023, rank 122), pointing to challenges in creating an efficient, rules-based regulatory framework for business, investment, and service provision. The rule of law is moderate (0.549, 2023, rank 62), suggesting a basic level of legal certainty and contract enforcement, yet there is room to strengthen judicial independence and timeliness. Control of corruption is negative (-0.308, 2023, rank 102), signaling exposure to corrupt practices that can distort procurement, licensing, and public programs. Government effectiveness is also modest (-0.115, 2023, rank 104), reflecting constraints in implementing policy and delivering public services. Taken together, Tonga enjoys political stability but faces governance challenges in regulatory quality, anti-corruption, and institutional capacity. Addressing these gaps would help attract investment, enhance public service delivery, and improve overall economic performance while preserving social cohesion and trust in institutions.

Infrastructure and Technology

Tonga’s infrastructure and technology profile reflects a small, open economy with limited digital reach and healthcare capacity adequate for its population size but with notable gaps. Internet usage stands at 58.5% of the population in 2023, ranking around 104, indicating that just over half of Tongans are online, with significant room for expanding digital access and usage for education, commerce, and public services. The health workforce is lean, with physicians at 1.01 per 1,000 people in 2021, ranking 69, highlighting constraints in access to medical care and potential travel-time barriers for patients in more remote areas. Renewable energy consumption is only 2.3% of total final energy consumption in 2022, ranking 55, signaling heavy reliance on imported fuels for electricity and substantial opportunities to improve energy security and reduce vulnerability to fuel price swings. These indicators collectively suggest that Tonga’s digital and physical infrastructure could be a major growth lever if targeted investments are made—particularly in expanding broadband reach, upgrading energy infrastructure toward renewables, and strengthening health and transport networks—while calibrating strategies to the geographic realities of a dispersed island nation.

Environment and Sustainability

Tonga’s environmental indicators reveal a landscape of both vulnerability and opportunities for sustainable development. Renewable energy consumption remains very low at 2.3% of total final energy use (2022), underscoring a high dependence on imported fossil fuels and a substantial potential payoff from scaling up renewable generation, improving energy security, and reducing import costs. Total greenhouse gas emissions per capita are 3.27 t CO2e (2023), placing Tonga in a modest emission tier given its small population, but still reflecting a climate footprint that communities must manage alongside global efforts. The small size and geographic dispersion of islands mean climate risks—such as Tropical cyclones, sea-level rise, and coastal erosion—pose acute threats to infrastructure, livelihoods, and ecosystems. In this context, accelerating renewable energy deployment, building climate-resilient infrastructure, and integrating sustainability into planning are vital. While the data show progress in health and governance, Tonga’s environmental trajectory emphasizes a clear priority: diversify energy sources, invest in climate adaptation, and pursue sustainable development that aligns with the country’s social and economic needs while protecting its unique island ecosystems for future generations.