Cook Islands Economy 2007

Economy - overview:
Like many other South Pacific island nations, the Cook Islands' economic development is hindered by the isolation of the country from foreign markets, the limited size of domestic markets, lack of natural resources, periodic devastation from natural disasters, and inadequate infrastructure. Agriculture, employing about one-third of the working population, provides the economic base with major exports made up of copra and citrus fruit. Black pearls are the Cook Islands' leading export. Manufacturing activities are limited to fruit processing, clothing, and handicrafts. Trade deficits are offset by remittances from emigrants and by foreign aid, overwhelmingly from New Zealand. In the 1980s and 1990s, the country lived beyond its means, maintaining a bloated public service and accumulating a large foreign debt. Subsequent reforms, including the sale of state assets, the strengthening of economic management, the encouragement of tourism, and a debt restructuring agreement, have rekindled investment and growth.

GDP (purchasing power parity):
$183.2 million (2005 est.)

GDP (official exchange rate):
$183.2 million (2005 est.)

GDP - real growth rate:
0.1% (2005 est.)

GDP - per capita (PPP):
$9,100 (2005 est.)

GDP - composition by sector:
agriculture: 15.1%
industry: 9.6%
services: 75.3% (2004)

Labor force:
6,820 (2001)

Labor force - by occupation:
agriculture: 29%
industry: 15%
services: 56% (1995)

Unemployment rate:
13.1% (2005)

Population below poverty line:
NA%

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

Inflation rate (consumer prices):
2.1% (2005 est.)

Budget:
revenues: $70.95 million
expenditures: $69.05 million (FY05/06)

Agriculture - products:
copra, citrus, pineapples, tomatoes, beans, pawpaws, bananas, yams, taro, coffee; pigs, poultry

Industries:
fruit processing, tourism, fishing, clothing, handicrafts

Industrial production growth rate:
1% (2002)

Electricity - production:
30 million kWh (2005)

Electricity - consumption:
27.9 million kWh (2005 est.)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
0 bbl/day (2004)

Oil - consumption:
420 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
0 cu m (2005 est.)

Current account balance:
$26.67 million (2005)

Exports:
$5.222 million (2005)

Exports - commodities:
copra, papayas, fresh and canned citrus fruit, coffee; fish; pearls and pearl shells; clothing

Exports - partners:
Australia 34%, Japan 27%, NZ 25%, US 8% (2006)

Imports:
$81.04 million (2005)

Imports - commodities:
foodstuffs, textiles, fuels, timber, capital goods

Imports - partners:
NZ 61%, Fiji 19%, US 9%, Australia 6%, Japan 2% (2006)

Economic aid - recipient:
$13.1 million; note - New Zealand continues to furnish the greater part (1995)

Debt - external:
$141 million (1996 est.)

Currency (code):
NZ dollar (NZD)

Exchange rates:
NZ dollars per US dollar - 1.5408 (2006), 1.4203 (2005), 1.5087 (2004), 1.7221 (2003), 2.1622 (2002)