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Monday, February 07, 2022

Tonga and the Missing Money

 Four out of five Tongan households receive remittances from abroad.

This forms a major source of income, equivalent to about 30% of household consumption, according to the World Bank's International Finance Corporation.

Tonga's economy is largely agriculture-driven, but the contribution of remittances from abroad to its GDP outstrips even the export of goods like coconuts, squash, and cassavas.

In fact, a whopping 40% of Tonga's GDP stems from such remittances, which were valued at around $190m (£140m) in 2019.


Last month's tsunami, triggered by the undersea eruption, broke the internet cables. 


Western Union was offline. MoneyGram was offline. All the usual remittance providers were offline.


Meantime, prices of essential items are also said to have ballooned in the aftermath of the disaster. The only water that people could obtain was by going to the shops, and the price was being increased because of the demand.


Tonga: How an Internet blackout left many desperate for money - BBC News

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