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The Economy of Niue

Niuean Economy

Niue's map

Economy - overview: The economy suffers from the typical Pacific island problems of geographic isolation, few resources, and a small population. Government expenditures regularly exceed revenues, and the shortfall is made up by critically needed grants from New Zealand that are used to pay wages to public employees. Niue has cut government expenditures by reducing the public service by almost half. The agricultural sector consists mainly of subsistence gardening, although some cash crops are grown for export. Industry consists primarily of small factories to process passion fruit, lime oil, honey, and coconut cream. The sale of postage stamps to foreign collectors is an important source of revenue. The island in recent years has suffered a serious loss of population because of emigration to New Zealand. Efforts to increase GDP include the promotion of tourism and a financial services industry, although the International Banking Repeal Act of 2002 resulted in the termination of all offshore banking licenses. Economic aid from New Zealand in 2002 was US$2.6 million. Niue suffered a devastating typhoon in January 2004, which decimated nascent economic programs. While in the process of rebuilding, Niue has been dependent on foreign aid.

GDP:

GDP - real growth rate: 6.2% (2003 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 23.5% industry: 26.9% services: 49.5% (2003)

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: 663 (2001)

Labor force - by occupation: note: most work on family plantations; paid work exists only in government service, small industry, and the Niue Development Board

Unemployment rate: 12% (2001)

Budget: revenues: $15.07 million expenditures: $16.33 million (FY0405)

Industries: tourism, handicrafts, food processing

Industrial production growth rate: NA%

Electricity - production: 4 million kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 3.72 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: 20 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2005)

Oil - imports: 26.57 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: coconuts, passion fruit, honey, limes, taro, yams, cassava (tapioca), sweet potatoes; pigs, poultry, beef cattle

Exports: $201,400 (2004)

Exports - commodities: canned coconut cream, copra, honey, vanilla, passion fruit products, pawpaws, root crops, limes, footballs, stamps, handicrafts

Exports - partners:

Imports: $9.038 million f.o.b. (2004)

Imports - commodities: food, live animals, manufactured goods, machinery, fuels, lubricants, chemicals, drugs

Imports - partners:

Debt - external: $418,000 (2002 est.)

Economic aid - recipient:

Currency:

Currency code:

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

Fiscal year: