Niue Economy Profile 2008

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 (purchasing power parity)

$7.6 million (2000 est.)

GDP (official exchange rate)

$10.01 million (2003)

GDP - real growth rate

6.2% (2003 est.)

GDP - per capita (PPP)

$5,800 (2003 est.)

GDP - composition by sector

agriculture: 23.5%
industry: 26.9%
services: 49.5% (2003)

Population below poverty line

NA%

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

4% (2005)

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 (FY04/05)

Industries

tourism, handicrafts, food processing

Industrial production growth rate

NA%

Electricity - production

3 million kWh (2005)

Electricity - consumption

2.79 million kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

20 bbl/day (2005 est.)

Oil - imports

20.38 bbl/day (2004)

Oil - exports

0 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

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

New Zealand mainly, Fiji, Cook Islands, Australia (2006)

Imports

$9.038 million (2004)

Imports - commodities

food, live animals, manufactured goods, machinery, fuels, lubricants, chemicals, drugs

Imports - partners

New Zealand mainly, Fiji, Japan, Samoa, Australia, US (2006)

Debt - external

$418,000 (2002 est.)

Economic aid - recipient

$2.6 million from New Zealand (2002)

Currency (code)

New Zealand dollar (NZD)

Exchange rates

New Zealand dollars per US dollar - 1.3811 (2007), 1.5408 (2006), 1.4203 (2005), 1.5087 (2004), 1.7221 (2003)

Fiscal year

1 April - 31 March