Tonga Short-term Debt

Tonga’s short‑term external debt has fallen dramatically over the 41‑year series, moving from an early‑period level of 2.93 % of gross external debt in 1985 to a historic low of 0.00 % in 2025, the same figure recorded by peer Burkina Faso. The sharpest contraction occurred after the all‑time peak of 17.19 % in 1990, when debt service pressures were amplified by regional economic turbulence and limited fiscal buffers. Subsequent years saw a gradual but persistent reduction, aided by prudent fiscal consolidation, modest borrowing, and a reliance on concessional financing that limited the need for short‑term roll‑overs. By 2025 Tonga ranked 113th globally with a zero short‑term debt ratio, matching the performance of Liberia and surpassing the modest deficits of Comoros (‑0.10 %) and Grenada (‑0.14 %). If the government maintains its disciplined borrowing strategy and continues to diversify revenue sources, the zero‑debt position is likely to be sustained, though any resurgence in external shocks could prompt a reversal of the current trajectory.