Economy

Economy—overview: Revenues come from the export of phosphates the reserves of which are expected to be exhausted by the year 2000. Phosphates have given Nauruans one of the highest per capita incomes in the Third World but incomes probably will drop sharply in the future. Few other resources exist so most necessities must be imported including fresh water from Australia. The rehabilitation of mined land and the replacement of income from phosphates are serious long-term problems. Substantial amounts of phosphate income are invested in trust funds to help cushion the transition. However dividends from the trusts have declined sharply since 1990 and the government has been borrowing heavily from the trusts to finance fiscal deficits. In an effort to stem further escalation of fiscal problems the government has called for a freeze on wages for two years a reduction of over-staffed public service departments drastic cutbacks in hiring new government staff privatization of numerous government agencies and closure of some overseas consulates.

GDP: purchasing power parity—$100 million (1993 est.)

GDP—real growth rate: NA%

GDP—per capita: purchasing power parity—$10 000 (1993 est.)

GDP—composition by sector:

agriculture: NA%

industry: NA%

services: NA%

Inflation rate—consumer price index: -3.6% (1993)

Labor force:

by occupation: employed in mining phosphates public administration education and transportation

Unemployment rate: 0%

Budget:

revenues: $23.4 million

expenditures: $64.8 million including capital expenditures of $NA (FY95/96)

Industries: phosphate mining financial services coconut products

Industrial production growth rate: NA%

Electricity—capacity: 10 000 kW (1995)

Electricity—production: 30 million kWh (1995)

Electricity—consumption per capita: 2 956 kWh (1995)

Agriculture—products: coconuts predominate

Exports:

total value: $25.3 million (f.o.b. 1991)

commodities: phosphates

partners: Australia NZ

Imports:

total value: $21.1 million (c.i.f. 1991)

commodities: food fuel manufactures building materials machinery

partners: Australia UK NZ Japan

Debt—external: $33.3 million

Economic aid:

recipient: ODA $2.25 million from Australia (FY96/97 est.)

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: 1 July—30 June