Asia Development Member Fact Sheet: Tonga 2021 Updated September

Abstract

Tonga is a small island economy with the challenges of geographic isolation, limited human and financial resources, a small domestic market, and high costs of doing business. The country relies significantly on official development assistance and remittances, increasing its vulnerability to external shocks. The Asian Development Bank (ADB) has been supporting Tonga since 1972, with a focus on overcoming medium-term development issues. ADB’s assistance has helped implement structural reforms to improve productivity, enhance disaster and climate resilience, and strengthen macroeconomic foundations. Over the past year, the bank has also supported the Government of Tonga’s response to the coronavirus disease (COVID-19) crisis.