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The Economy of Cook Islands

Cook Islander Economy

Cook Islands' map

Economy - overview: Like many other South Pacific island nations, the Cook Islands' economic development is hindered by the isolation of the country from foreign markets, the limited size of domestic markets, lack of natural resources, periodic devastation from natural disasters, and inadequate infrastructure. Agriculture, employing about one-third of the working population, provides the economic base with major exports made up of copra and citrus fruit. Black pearls are the Cook Islands' leading export. Manufacturing activities are limited to fruit processing, clothing, and handicrafts. Trade deficits are offset by remittances from emigrants and by foreign aid overwhelmingly from New Zealand. In the 1980s and 1990s, the country lived beyond its means, maintaining a bloated public service and accumulating a large foreign debt. Subsequent reforms, including the sale of state assets, the strengthening of economic management, the encouragement of tourism, and a debt restructuring agreement, have rekindled investment and growth.

GDP:

GDP - real growth rate: 0.1% (2005 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 15.1% industry: 9.6% services: 75.3% (2004)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index:

Inflation rate (consumer prices):

Labor force: 6,820 (2001)

Labor force - by occupation: agriculture: 29% industry: 15% services: 56% (1995)

Unemployment rate: 13.1% (2005)

Budget: revenues: $70.95 million expenditures: $69.05 million (FY05/06)

Industries: fruit processing, tourism, fishing, clothing, handicrafts

Industrial production growth rate: 1% (2002)

Electricity - production: 30 million kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 27.9 million kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 0 bbl/day (2007 est.)

Oil - consumption: 463.7 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2005)

Oil - imports: 475.5 bbl/day (2005)

Oil - proved reserves: 0 bbl (1 January 2006 est.)

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 0 cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 0 cu m (1 January 2006 est.)

Agriculture - products: copra, citrus, pineapples, tomatoes, beans, pawpaws, bananas, yams, taro, coffee; pigs, poultry

Exports: $5.222 million (2005)

Exports - commodities: copra, papayas, fresh and canned citrus fruit, coffee; fish; pearls and pearl shells; clothing

Exports - partners:

Imports: $81.04 million f.o.b. (2005)

Imports - commodities: foodstuffs, textiles, fuels, timber, capital goods

Imports - partners:

Debt - external: $141 million (1996 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: NZ dollars (NZD) per US dollar - 1.4151 (2008 est.), 1.3811 (2007), 1.5408 (2006), 1.4203 (2005), 1.5087 (2004)

Fiscal year: