Economy of Niue


The economy of Niue is heavily dependent upon aid from New Zealand. Government expenditures regularly exceed revenues, and grants from New Zealand make up the shortfall and are used to pay wages to public employees. Niue has cut government expenditures by reducing the public service by almost half.

Local economic activity

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 has historically been an important source of revenue.
The island in recent years has suffered a serious loss of population because of migration of Niueans to New Zealand. Efforts to increase GDP include the promotion of tourism. An initiative into the financial services industry was dropped under pressure from the US Treasury. More recently the sale of Internet domain names under the NU top level domain has brought in some income. These domains are particularly popular in Scandinavia, Belgium and the Netherlands, since nu means "now" in Dutch and the Scandinavian languages.

Economic statistics

GDP: USD$24.938 million
GDP:
purchasing power parity – $10 million,
GDP – real growth rate:
6.2%
GDP – per capita:
nominal - USD$15,586
purchasing power parity – $5,800, $15,066
GDP – composition by sector:
agriculture:
23%
industry:
27%
services:
50%
Population below poverty line:
13%
Household income or consumption by percentage share:
lowest 10%:
NA%
highest 10%:
NA%
Inflation rate :
1%
Labor force:
450 663
Labor force – by occupation:
Most people work on family plantations; paid work exists only in government service, small industry, and on the Niue Development Board
Unemployment rate:
12%
Budget:
revenues:
$15.07 million
$26 million
expenditures:
$16.33 million
Industries:
tourism, handicrafts, food processing
Industrial production growth rate:
NA%
Electricity – production:
3 GWh
Electricity – production by source:
fossil fuel:
100%
hydro:
0%
nuclear:
0%
other:
0%
Electricity – consumption:
3 GWh
Electricity – exports:
0 kWh
Electricity – imports:
0 kWh
Agriculture – products:
coconuts, passion fruit, honey, limes, taro, yams, cassava, sweet potatoes; pigs, poultry, beef cattle
Exports:
$3.52 million 2014, USD$1.391 million
Exports – commodities:
canned coconut cream, copra, honey, passion fruit products, pawpaws, root crops, limes, footballs, stamps, handicrafts
In 2014:
  • Iron Structures
  • Refined petroleum
  • Cement
  • Fruit Juice
  • Delivery Trucks
Exports – partners:
New Zealand 89%, Fiji, Cook Islands, Australia.
In 2014:
  • Senegal 44%
  • Czech Republic 12%
  • New Zealand 10%
  • Gambia 8%
  • United States 5%
Imports:
$9 million, $19 million, USD$14.95 million, NZD$21.5 million
Imports – commodities:
food, live animals, manufactured goods, machinery, fuels, lubricants, chemicals, drugs
In 2014: Special Purpose Ships, Refined Petroleum, Large Construction Vehicles, Prefabricated Buildings and Cars.
Imports – partners:
New Zealand 59%, Fiji 20%, Japan 13%, Samoa, Australia, United States
In 2014:
  • New Zealand
  • Japan
  • Canada
  • Fiji
  • Australia
Debt – external:
$NA
Economic aid – recipient:
$8.3 million, $5.7 million
Currency:
1 New Zealand dollar = 100 cents
Exchange rates:
New Zealand dollars per US$1 – 1.9451, 1.8889, 1.8629, 1.5082, 1.4543, 1.5235
Fiscal year:
1 April – 31 March