Nauru Economy - 2005

Economy - overview:
Revenues of this tiny island have traditionally come from exports of phosphates, but reserves are now depleted. 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. In anticipation of the exhaustion of Nauru's phosphate deposits, substantial amounts of phosphate income have been 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 called for a freeze on wages, a reduction of over-staffed public service departments, privatization of numerous government agencies, and closure of some overseas consulates. In recent years Nauru has encouraged the registration of offshore banks and corporations. In 2004 the deterioration in housing, hospitals, and other capital plant continued, and the cost to Australia of keeping the government and economy afloat has substantially mounted. Few comprehensive statistics on the Nauru economy exist, with estimates of Nauru's GDP varying widely.

GDP:
purchasing power parity - $60 million (2001 est.)

GDP - real growth rate:
NA

GDP - per capita:
purchasing power parity - $5,000 (2001 est.)

GDP - composition by sector:
agriculture: NA
industry: NA
services: NA

Labor force - by occupation:
employed in mining phosphates, public administration, education, and transportation

Unemployment rate:
90% (2004 est.)

Population below poverty line:
NA

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

Inflation rate (consumer prices):
-3.6% (1993)

Budget:
revenues: $23.4 million
expenditures: $64.8 million, including capital expenditures of NA (FY95/96)

Agriculture - products:
coconuts

Industries:
phosphate mining, offshore banking, coconut products

Industrial production growth rate:
NA

Electricity - production:
30 million kWh (2002)

Electricity - consumption:
27.9 million kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
1,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Exports:
$640,000 f.o.b. (2004 est.)

Exports - commodities:
phosphates

Exports - partners:
South Africa 37.6%, India 19.7%, Germany 17.9%, South Korea 10.2%, Japan 6.3% (2004)

Imports:
$19.8 million c.i.f. (2004 est.)

Imports - commodities:
food, fuel, manufactures, building materials, machinery

Imports - partners:
Australia 59.1%, Indonesia 16.7%, UK 4.3%, Germany 4.1% (2004)

Debt - external:
$33.3 million (2002)

Economic aid - recipient:
$2.25 million from Australia (FY96/97 est.)

Currency (code):
Australian dollar (AUD)

Exchange rates:
Australian dollars per US dollar - 1.3598 (2004), 1.5419 (2003), 1.8406 (2002), 1.9334 (2001), 1.7248 (2000)