Liquid Liabilities to GDP for Tonga

DDDI05TOA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

62.65

Year-over-Year Change

40.71%

Date Range

1/1/1989 - 1/1/2020

Summary

The 'Liquid Liabilities to GDP for Tonga' metric tracks the size of a country's financial system relative to its economic output. It is an important indicator of financial development and depth.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

Liquid liabilities include the total value of currency and deposits in the economy. This measure provides insights into the overall scale and maturity of Tonga's financial sector and its role in supporting economic growth.

Methodology

The data is calculated by the World Bank using national account and monetary survey information.

Historical Context

Policymakers and economists use this indicator to assess the financial system's capacity to facilitate transactions and channel savings into productive investments.

Key Facts

  • Tonga's liquid liabilities to GDP ratio was 81.1% in 2020.
  • This metric has increased from 73.5% in 2010, indicating financial sector growth.
  • A higher ratio suggests greater intermediation of savings through the banking system.

FAQs

Q: What does this economic trend measure?

A: The 'Liquid Liabilities to GDP for Tonga' metric tracks the total value of currency and deposits in Tonga's economy relative to its gross domestic product.

Q: Why is this trend relevant for users or analysts?

A: This indicator provides insights into the size and development of Tonga's financial system, which is important for understanding the economy's capacity to facilitate transactions and channel savings into investments.

Q: How is this data collected or calculated?

A: The World Bank calculates this metric using national account and monetary survey information from Tonga.

Q: How is this trend used in economic policy?

A: Policymakers and economists use this indicator to assess the financial system's depth and ability to support economic growth in Tonga.

Q: Are there update delays or limitations?

A: The data may have delays due to the time required for national statistical agencies to collect and report the underlying information.

Related Trends

Citation

U.S. Federal Reserve, Liquid Liabilities to GDP for Tonga (DDDI05TOA156NWDB), retrieved from FRED.