Tonga: Asian Development Bank Member Fact Sheet 2018 Updated

Abstract

Tonga faces development challenges typical of many small island economies. These challenges include geographic isolation, limited human and financial resources, a small domestic market, high costs of doing business, and inefficient delivery of services. The country’s economy is narrowly based and depends heavily on remittances and external assistance to supplement domestic revenue. Tonga’s medium-term development requires continued implementation of structural reforms to improve productivity, remove bottlenecks to growth, develop disaster resilience, climate-proof infrastructure, and strengthen macroeconomic foundations.