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
GDP - real growth rate:
6.2%
GDP - per capita (PPP):
$5,800 (2003 est.)
GDP - composition by sector:
agriculture: 23.5%
industry: 26.9%
services: 49.5% (2003)
Labor force:
NA 663
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% NA%
Population below poverty line:
NA%