Reunion Economy Profile 2006

Economy - overview

The economy has traditionally been based on agriculture, but services now dominate. Sugarcane has been the primary crop for more than a century, and in some years it accounts for 85% of exports. The government has been pushing the development of a tourist industry to relieve high unemployment, which amounts to one-third of the labor force. The gap in Reunion between the well-off and the poor is extraordinary and accounts for the persistent social tensions. The white and Indian communities are substantially better off than other segments of the population, often approaching European standards, whereas minority groups suffer the poverty and unemployment typical of the poorer nations of the African continent. The outbreak of severe rioting in February 1991 illustrated the seriousness of socioeconomic tensions. The economic well-being of Reunion depends heavily on continued financial assistance from France.

GDP (purchasing power parity)

$4.79 billion (2005 est.)

GDP (official exchange rate)

NA

GDP - real growth rate

2.5% (2005 est.)

GDP - per capita (PPP)

$6,200 (2005 est.)

GDP - composition by sector

agriculture: 8%
industry: 19%
services: 73% (2000 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

NA%

Labor force

299,000 (2002)

Labor force - by occupation

agriculture: 13%
industry: 12%
services: 75% (2000)

Unemployment rate

31% (2002)

Budget

revenues: $554.7 million
expenditures: $554.7 million; including capital expenditures of $NA (1998)

Industries

sugar, rum, cigarettes, handicraft items, flower oil extraction

Industrial production growth rate

NA%

Electricity - production

1.19 billion kWh (2003)

Electricity - consumption

1.107 billion kWh (2003)

Electricity - exports

0 kWh (2003)

Electricity - imports

0 kWh (2003)

Oil - production

0 bbl/day (2003 est.)

Oil - consumption

18,500 bbl/day (2003 est.)

Oil - exports

NA bbl/day

Oil - imports

NA bbl/day

Natural gas - production

0 cu m (2003 est.)

Natural gas - consumption

0 cu m (2003 est.)

Agriculture - products

sugarcane, vanilla, tobacco, tropical fruits, vegetables, corn

Exports

$248.5 million f.o.b. (2002)

Exports - commodities

sugar 63%, rum and molasses 4%, perfume essences 2%, lobster 3%

Exports - partners

France 74%, Japan 6%, Comoros 4% (2004)

Imports

$3.306 billion c.i.f. (2002)

Imports - commodities

manufactured goods, food, beverages, tobacco, machinery and transportation equipment, raw materials, and petroleum products

Imports - partners

France 64%, Bahrain 3%, Germany 3%, Italy 3% (2004)

Debt - external

$NA

Economic aid - recipient

$NA; note - substantial annual subsidies from France (2001 est.)

Currency (code)

euro (EUR)

Exchange rates

euros per US dollar - 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001)

Fiscal year

calendar year