Niue: Economy#

The economy suffers from the typical Pacific island problems of geographic isolation, few resources, and a small population. The agricultural sector consists mainly of subsistence gardening, although some cash crops are grown for export. Industry consists primarily of small factories for processing passion fruit, lime oil, honey, and coconut cream. The sale of postage stamps to foreign collectors is an important source of revenue.

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. Economic aid allocation from New Zealand in FY13/14 was US$10.1 million. Niue has cut government expenditures by reducing the public service by almost half.

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 financial services, although the International Banking Repeal Act of 2002 resulted in the termination of all offshore banking licenses.

Economic Facts#

GDP (purchasing power parity)$10.01 million (2003 est.)
GDP (official exchange rate)$10.01 million (2003)
GDP - real growth rate6.2% (2003 est.)
GDP - per capita (PPP)$5,800 (2003 est.)
GDP - composition, by sector of originagriculture: 23.5%
industry: 26.9%
services: 49.5% (2003)
Agriculture - productscoconuts, passion fruit, honey, limes, taro, yams, cassava (manioc, tapioca), sweet potatoes; pigs, poultry, beef cattle
Industrieshandicrafts, food processing
Industrial production growth rateNA%
Labor force663 (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 rate12% (2001)
Population below poverty lineNA%
Household income or consumption by percentage sharelowest 10%: NA%
highest 10%: NA%
Budgetrevenues: $15.07 million
expenditures: $16.33 million (FY04/05)
Budget surplus (+) or deficit (-)-12.6% of GDP (FY04/05)
Fiscal year1 April - 31 March
Inflation rate (consumer prices)4% (2005)
Exports$201,400 (2004 est.)
Exports - commoditiescanned coconut cream, copra, honey, vanilla, passion fruit products, pawpaws, root crops, limes, footballs, stamps, handicrafts
Exports - partnersGermany 25%, Belgium 11%, United Kingdom 8%, France 8%, Italy 4%, United States 4% (2014)
Imports$9.038 million (2004 est.)
Imports - commoditiesfood, live animals, manufactured goods, machinery, fuels, lubricants, chemicals, drugs
Imports - partnersGermany 16%, Belgium 10%, China 9%, United States 7%, United Kingdom 7%, Russia 5%, France 4%, Norway 4% (2014)
Debt - external$418,000 (2002 est.)
Exchange ratesNew Zealand dollars (NZD) per US dollar -
1.441 (2016 est.)
1.4279 (2015 est.)
1.2039 (2014 est.)
1.2039 (2013 est.)
1.23 (2012 est.)