Tonga's economy is characterised by a large non-monetary sector and a heavy dependence on remittances from the half of the country's population who live abroad (chiefly in Australia, New Zealand, and the United States). The royal family and the nobles dominate and largely own the monetary sector of the economy – particularly the telecommunications and satellite services. Tonga was named the sixth most corrupt country in the world by Forbes magazine in 2008.
Tonga was ranked the 165th safest investment destination in the world in the March 2011 Euromoney Country Risk rankings.
The manufacturing sector consists of handicrafts and a few other very small scale industries, which contribute only about 3% of GDP. Commercial business activities also are inconspicuous and, to a large extent, are dominated by the same large trading companies found throughout the South Pacific. In September 1974, the country's first commercial trading bank, the Bank of Tonga, opened. There are no patent laws in Tonga.
Rural Tongans rely on plantation and subsistence agriculture. Coconuts, vanilla beans, bananas, coffee beans and root crops such as yams, taro and cassava, are the major cash crops. The processing of coconuts into copra and desiccated (dried) coconut was once the only significant industry but deteriorating prices on the world market has brought this once vibrant industry, as everywhere throughout the island nations of the south Pacific, to a complete standstill. In addition, the feudal land ownership system meant that farmers had no incentive to invest in planting long-term tree crops on land they did not own. Pigs and poultry are the major types of livestock. Horses are kept for draft purposes, primarily by farmers working their 'api 'uta (a plot of bushland). More cattle are being raised, and beef imports are declining. The export of squash to Japan once brought relief to a struggling economy but recently local farmers are increasingly wary of this
