Tonga’s export revenue falls by 25% in first quarter of 2025

Tonga’s exports plummeted in the first quarter of 2025 compared to the same period last year.
Photo: RNZ Pacific

Tonga’s exports plummeted in the first quarter of 2025 compared to the same period last year, new government figures show.

According to the figures, the government lost export revenues totalling T$1.7 million (US$734,000) – a 25.3 percent drop since Q1 2024 – as the island kingdom exports more vegetable products affected by seasonality.

A total of T$1.3m in exports was generated from root crop exports, such as cassava, yams, and taro, with a further T$600,000 from kava, and T$600,000 from fish: altogether making up nearly two-thirds share of total exports.

Meanwhile, import spending increased by T$20m (US$8.6m), or 12.6 percent over the year.

Total export revenue amounted to T$5 million, while import expenditure reached T$177.1m – around 35 percent of Tonga’s GDP (gross domestic product).

This comes as the United States, where Tonga sends 21.6 percent of its goods, slaps on a 10 percent tariff and a one percent tax on remittances.

Photo: 123rf/ Don Mammoser

Experts say that Tonga’s economy is being jeopardised as a result.

In a recent publication, the Pacific Network on Globalisation (PANG) said that the developments reflect a deepening trade imbalance, where Tonga bleeds money it doesn’t have.

“This widening scissor pattern, with imports now 35 times larger than exports, exposes fundamental economic vulnerabilities that quarterly variations cannot mask.”

“Mineral products-predominantly fuel-constitute nearly 20 percent of imports at T$33.8m, while the nation’s entire domestic export base generates just T$5-6m in recent quarters.”

In terms of destinations, the revenue generated from exports to fellow Pacific nations, mainly New Zealand and Australia, would only be able to fund a couple weeks worth of imports, PANG said.

“Unless Tonga undertakes meaningful structural reforms, its dependence on external flows-such as remittances, aid, and concessional loans-will only deepen as the trade deficit widens.”

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