Economy

Economy—overview: A remote country of 33 scattered coral atolls Kiribati has few national resources. Commercially viable phosphate deposits were exhausted at the time of independence from the UK in 1979. Copra and fish now represent the bulk of production and exports. The economy has fluctuated widely in recent years. Real GDP growth has declined from about 10% in 1988 to about 2.6% in 1995 and 1.9% in 1996. Growth in 1997 was expected to parallel the 1996 performance. Economic development is constrained by a shortage of skilled workers weak infrastructure and remoteness from international markets. The financial sector is at an early stage of development as is the expansion of private sector initiatives. Foreign financial aid largely from the UK and Japan is a critical supplement to GDP equal in amount to 25%-50% of GDP in recent years. Remittances from workers abroad account for more than $5 million each year.

GDP: purchasing power parity—$62 million (1996 est.)

GDP—real growth rate: 1.9% (1996 est.)

GDP—per capita: purchasing power parity—$800 (1996 est.)

GDP—composition by sector:

agriculture: 14%

industry: 7%

services: 79% (1996 est.)

Inflation rate—consumer price index: -0.6% (1996 est.)

Labor force:

total: 7 870 economically active not including subsistence farmers (1985 est.)

Unemployment rate: 2%; underemployment 70% (1992 est.)

Budget:

revenues: $33.3 million

expenditures: $47.7 million including capital expenditures of $NA million (1996 est.)

Industries: fishing handicrafts

Industrial production growth rate: 0.7% (1992 est.)

Electricity—capacity: 2 000 kW (1995)

Electricity—production: 7 million kWh (1995)

Electricity—consumption per capita: 88 kWh (1995)

Agriculture—products: copra taro breadfruit sweet potatoes vegetables; fish

Exports:

total value: $6.7 million (f.o.b. 1996 est.)

commodities: copra 62% seaweed fish

partners: US Australia NZ (1996)

Imports:

total value: $37.4 million (c.i.f. 1996 est.)

commodities: foodstuffs machinery and equipment miscellaneous manufactured goods fuel

partners: Australia 46% Fiji Japan NZ US (1996)

Debt—external: $7.2 million (1996 est.)

Economic aid:

recipient: ODA $4.725 million from Australia (FY96/97 est.); $2.175 million from NZ (FY95/96)

Currency: 1 Australian dollar ($A) = 100 cents

Exchange rates: Australian dollars ($A) per US$1—1.5281 (January 1998) 1.3439 (1997) 1.2773 (1996) 1.3486 (1995) 1.3667 (1994) 1.4704 (1993)

Fiscal year: NA