Economy

Economy—overview: Tuvalu consists of a densely populated scattered group of nine coral atolls with poor soil. The country has no known mineral resources and few exports. Subsistence farming and fishing are the primary economic activities. The islands are too small and too remote for development of a large-scale tourist industry. Government revenues largely come from the sale of stamps and coins and worker remittances. About 1 000 Tuvaluans work in Nauru in the phosphate mining industry. Nauru has begun repatriating Tuvaluans however as phosphate resources decline which will present additional problems for Tuvalu's already stretched economy. Substantial income is received annually from an international trust fund established in 1987 by Australia NZ and the UK and supported also by Japan and South Korea. In an effort to reduce its dependence on foreign aid the government is pursuing public sector reforms including privatization of some government functions and personnel cuts of up to 7%. Low-lying Tuvalu is particularly vulnerable to any future global warming.

GDP: purchasing power parity—$7.8 million (1995 est.)

GDP—real growth rate: 8.7% (1995)

GDP—per capita: purchasing power parity—$800 (1995 est.)

GDP—composition by sector:

agriculture: NA%

industry: NA%

services: NA%

Inflation rate—consumer price index: 3.9% (average 1985-93)

Labor force: NA

by occupation: NA

note: people make a living mainly through exploitation of the sea reefs and atolls and from wages sent home by those working abroad (mostly workers in the phosphate industry and sailors)

Unemployment rate: NA%

Budget:

revenues: $4.3 million

expenditures: $4.3 million including capital expenditures of $NA (1989 est.)

Industries: fishing tourism copra

Industrial production growth rate: NA%

Electricity—capacity: 2 600 kW (1995)

Electricity—production: 3 million kWh (1995)

Electricity—consumption per capita: NA kWh

Agriculture—products: coconuts; fish

Exports:

total value: $165 000 (f.o.b. 1989)

commodities: copra

partners: Fiji Australia NZ

Imports:

total value: $4.4 million (c.i.f. 1989)

commodities: food animals mineral fuels machinery manufactured goods

partners: Fiji Australia NZ

Debt—external: $NA

Economic aid:

recipient: ODA $1.725 million from Australia (FY96/97 est.); $1.7 million from NZ (FY95/96); note: substantial annual support from an international trust fund

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

Exchange rates: Tuvaluan dollars ($T) or Australian dollars ($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: calendar year