Nauru Economy Profile 2009

Economy - overview

Revenues of this tiny island have traditionally come from exports of phosphates now significantly depleted. An Australian company in 2005 entered into an agreement intended to exploit remaining supplies. Few other resources exist with most necessities being imported, mainly from Australia its former occupier and later major source of support. The rehabilitation of mined land and the replacement of income from phosphates are serious long-term problems. Reserves of phosphates may only last until 2010 at current mining rates. In anticipation of the exhaustion of Nauru's phosphate deposits, substantial amounts of phosphate income were invested in trust funds to help cushion the transition and provide for Nauru's economic future. As a result of heavy spending from the trust funds, the government faces virtual bankruptcy. To cut costs the government has frozen wages and reduced overstaffed public service departments. Nauru lost further revenue in 2008 with the closure of Australia's refugee processing center, making it almost totally dependent on food imports and foreign aid. Housing, hospitals, and other capital plant is deteriorating. The cost to Australia of keeping the government and economy afloat continues to climb. Few comprehensive statistics on the Nauru economy exist with estimates of Nauru's GDP varying widely.

GDP (purchasing power parity)

$60 million (2005 est.)

GDP (official exchange rate)

$NA

GDP - real growth rate

NA%

GDP - per capita (PPP)

$5,000 (2005 est.)

GDP - composition by sector

agriculture: NA%
industry: NA%
services: NA%

Population below poverty line

NA%

Labor force - by occupation

note: employed in mining phosphates, public administration, education, and transportation (1992)

Unemployment rate

90% (2004 est.)

Household income or consumption by percentage share

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

Budget

revenues: $13.5 million
expenditures: $13.5 million (2005)

Inflation rate (consumer prices)

NA%

Industries

phosphate mining, offshore banking, coconut products

Industrial production growth rate

NA%

Electricity - production

31 million kWh (2006 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

28.83 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

1,070 bbl/day (2006 est.)

Oil - imports

1,049 bbl/day (2005)

Oil - exports

0 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

Exports

$64,000 (2005 est.)

Exports - commodities

phosphates

Imports

$20 million (2004 est.)

Imports - commodities

food, fuel, manufactures, building materials, machinery

Debt - external

$33.3 million

Economic aid - recipient

$20 million mostly from Australia (2005)

Currency (code)

Australian dollar (AUD)

Currency (code)

AUD

Exchange rates

Australian dollars (AUD) per US dollar - 1.2059 (2008 est.), 1.2137 (2007), 1.3285 (2006), 1.3095 (2005), 1.3598 (2004)

Fiscal year

1 July - 30 June