Tonga Real Interest Rate
Real interest rate FR.INR.RINR
Tonga's real interest rate was -4.16% in 2025, ranked 85th globally. This represents a 818.9% decrease from 2024. Data from World Bank, covering 2012–2025.
Overview
Tonga's real interest rate stood at -4.16% in 2025, a decline of +3.71pp from 2024. Based on recent trends, this figure is projected to reach -4.16% by 2025. Tonga ranked 85th globally.
Tonga’s real interest rate has swung dramatically over the 14‑year series, moving from a high of 11.92 % in 2013 to a trough of –4.16 % in 2025, the latter placing the kingdom at rank 85 globally. The latest figure of –4.16 % reflects a deep negative stance that contrasts sharply with the 5.41 % recorded in 2012, indicating a sustained policy shift toward ultra‑low or negative real rates. Compared with peers of similar rank, Tonga’s rate is marginally lower than Aruba’s –4.09 % and more negative than Israel’s –3.96 %, but slightly above St. Kitts and Nevis’s –4.65 % and Montenegro’s –4.81 %. The sharp descent from the 2013 peak suggests that monetary conditions have been increasingly accommodative, likely in response to external shocks and domestic growth constraints. If inflation pressures ease and fiscal consolidation gains momentum, the trajectory could moderate toward less negative real rates, potentially stabilising the financing environment for investment.
Data & projection
| Year | Real Interest Rate | YoY change | Rank |
|---|---|---|---|
| 2027* trend | -8.54% | - | - |
| 2026* trend | -6.35% | - | - |
| 2025* trend | -4.16% | - | - |
| 2025 | -4.16% | −3.71pp | #85 |
| 2024 | -0.45% | −0.74pp | #8 |
| 2023 | 0.29% | +1.51pp | #25 |
| 2022 | -1.23% | −6.83pp | #35 |
| 2021 | 5.60% | −2.24pp | #80 |
| 2020 | 7.84% | +6.36pp | #68 |
| 2019 | 1.48% | −0.52pp | #13 |
| 2018 | 2.00% | −0.18pp | #30 |
| 2017 | 2.18% | −2.64pp | #39 |
| 2016 | 4.81% | +1.93pp | #55 |
| 2015 | 2.88% | −5.71pp | #24 |
| 2014 | 8.60% | −3.32pp | #95 |
| 2013 | 11.92% | +6.51pp | #116 |
| 2012 | 5.41% | – | #69 |
Detected Pattern
Analysis
Tonga matched the Fiscal Dominance Trap pattern in 2022. Historically, 72% of countries showing this pattern (278 out of 386) saw real interest rate improve within 24 months. View full analysis →
Frequently Asked Questions
Tonga's real interest rate was -4.16% in 2025. Ranked 85th globally. This represents a 818.9% decrease from the previous year.
Tonga's real interest rate peaked at 11.92% in 2013.
The lowest real interest rate in Tonga was -4.16% in 2025.
Tonga ranks 85th globally in real interest rate as of 2025.
The World Bank indicator code is FR.INR.RINR. Data sourced from World Bank.
Tonga's real interest rate is projected to reach -4.16% by 2025 based on trend extrapolation.
The real interest rate of Tonga in 2025 was -4.16%. This ranks 85th in the world.
Cite this page
@misc{historysaid_tonga_real-interest-rate,
title = {Tonga Real Interest Rate},
url = {https://historysaid.com/tonga/real-interest-rate/},
publisher = {HistorySaid},
year = {2026}
}