Tonga faces many of the challenges typical in small island economies, including geographic isolation, limited human and financial resources, and high costs of doing business and providing basic services. The economy has a narrow base, dependent on inflows of remittances and external assistance and is vulnerable to external shocks. Tonga’s economy had a 2.4% averaged growth rate during fiscal years 2015–2019 ending in June. The gross domestic product contracted by 0.8% in fiscal year 2020 and 5.3% in fiscal year 2021 are, due to the impacts of disasters and the coronavirus disease (COVID-19) pandemic.