Niue Economy 2007

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 about US$2 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)

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)

Population below poverty line:
NA%

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

Inflation rate (consumer prices):
4% (2005)

Budget:
revenues: $15.07 million
expenditures: $16.33 million (FY0405)

Agriculture - products:
coconuts, passion fruit, honey, limes, taro, yams, cassava (tapioca), sweet potatoes; pigs, poultry, beef cattle

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 (2004 est.)

Oil - consumption:
20 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.)

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)

Economic aid - recipient:
$2.6 million from New Zealand (2002)

Debt - external:
$418,000 (2002 est.)

Currency (code):
New Zealand dollar (NZD)

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