Tonga - Adjusted net national income (current US$)

The latest value for Adjusted net national income (current US$) in Tonga was 491,952,600 as of 2019. Over the past 38 years, the value for this indicator has fluctuated between 491,952,600 in 2019 and 58,525,310 in 1983.

Definition: Adjusted net national income is GNI minus consumption of fixed capital and natural resources depletion.

Source: World Bank staff estimates based on sources and methods described in "The Changing Wealth of Nations 2018: Building a Sustainable Future" (Lange et al 2018).

See also:

Year Value
1981 61,848,620
1982 61,369,120
1983 58,525,310
1984 62,299,470
1985 58,610,590
1986 67,351,110
1987 79,560,370
1988 106,802,200
1989 103,226,400
1990 108,627,800
1991 125,797,800
1992 129,412,600
1993 130,542,200
1994 190,246,600
1995 195,145,800
1996 209,232,100
1997 203,855,500
1998 183,491,100
1999 189,791,900
2000 190,124,900
2001 166,540,000
2002 171,477,200
2003 186,938,300
2004 213,655,800
2005 239,028,300
2006 274,244,500
2007 279,169,200
2008 322,316,400
2009 296,523,900
2010 346,686,700
2011 389,549,300
2012 442,030,100
2013 421,822,100
2014 404,315,100
2015 402,199,700
2016 384,687,200
2017 435,905,700
2018 474,485,400
2019 491,952,600

Development Relevance: Adjusted net national income is particularly useful in monitoring low-income, resource-rich economies, like many countries in Sub-Saharan Africa, because such economies often see large natural resources depletion as well as substantial exports of resource rents to foreign mining companies. For recent years adjusted net national income gives a picture of economic growth that is strikingly different from the one provided by GDP. The key to increasing future consumption and thus the standard of living lies in increasing national wealth - including not only the traditional measures of capital (such as produced and human capital), but also natural capital. Natural capital comprises such assets as land, forests, and subsoil resources. All three types of capital are key to sustaining economic growth. By accounting for the consumption of fixed and natural capital depletion, adjusted net national income better measures the income available for consumption or for investment to increase a country's future consumption.

Limitations and Exceptions: Adjusted net national income differs from the adjustments made in the calculation of adjusted net savings, by not accounting for investments in human capital or the damages from pollution. Thus, adjusted net national income remains within the boundaries of the United Nations System of National Accounts (SNA). The SNA includes non-produced natural assets (such as land, mineral resources, and forests) within the asset boundary when they are under the effective control of institutional units. The calculation of adjusted net national income, which accounts for net forest, energy, and mineral depletion, as well as consumption of fixed capital, thus remains within the SNA boundaries. This point is critical because it allows for comparisons across GDP, GNI, and adjusted net national income; such comparisons reveal the impact of natural resource depletion, which is otherwise ignored by the popular economic indicators.

Statistical Concept and Methodology: Adjusted net national income complements gross national income (GNI) in assessing economic progress (Hamilton and Ley 2010) by providing a broader measure of national income that accounts for the depletion of natural resources. Adjusted net national income is calculated by subtracting from GNI a charge for the consumption of fixed capital (a calculation that yields net national income) and for the depletion of natural resources. The deduction for the depletion of natural resources, which covers net forest depletion, energy depletion, and mineral depletion, reflects the decline in asset values associated with the extraction and harvesting of natural resources. This is analogous to depreciation of fixed assets.

Aggregation method: Gap-filled total

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts