Tonga's small and open economy is vulnerable to external shocks and it was hit hard by the global financial crisis. Development challenges include high levels of debt, limited employment opportunities, and low private sector investment levels.

ADB's country operations business plan (COBP), 2013-2015, for Tonga aims for sustained, resilient growth, and improved standards of living. The COBP envisages ongoing support for structural reform, urban infrastructure development, boosting connectivity via multimodal networks and new technologies, preparation of an outer island renewable energy project, and technical assistance to continue support for improving economic management.