Economy

Economy—overview: The economy is based primarily on subsistence or small-scale agriculture which provides a living for 65% of the population. Fishing offshore financial services and tourism with 46 000 visitors in 1996 are other mainstays of the economy. Mineral deposits are negligible; the country has no known petroleum deposits. A small light industry sector caters to the local market. Tax revenues come mainly from import duties. Economic development is hindered by dependence on relatively few commodity exports vulnerability to natural disasters and long distances from main markets and between constituent islands.

GDP: purchasing power parity—$231 million (1996 est.)

GDP—real growth rate: 3% (1996 est.)

GDP—per capita: purchasing power parity—$1 300 (1996 est.)

GDP—composition by sector:

agriculture: 23%

industry: 13%

services: 64% (1996)

Inflation rate—consumer price index: 2.2% (1997 est.)

Labor force:

total: NA

by occupation: agriculture 65% services 32% industry 3% (1995 est.)

Unemployment rate: NA%

Budget:

revenues: $94.4 million

expenditures: $99.8 million including capital expenditures of $30.4 million (1996 est.)

Industries: food and fish freezing wood processing meat canning

Industrial production growth rate: 6.4% (1996 est.)

Electricity—capacity: 11 000 kW (1995)

Electricity—production: 30 million kWh (1995)

Electricity—consumption per capita: 173 kWh (1995)

Agriculture—products: copra coconuts cocoa coffee taro yams coconuts fruits vegetables; fish beef

Exports:

total value: $30 million (f.o.b. 1996)

commodities: copra beef cocoa timber coffee

partners: Japan 28% Spain 21% Germany 14% UK 7% Cote d'Ivoire 7% Australia New Caledonia (1996 est.)

Imports:

total value: $97 million (f.o.b. 1996)

commodities: machines and vehicles food and beverages basic manufactures raw materials and fuels chemicals

partners: Japan 47% Australia 23% Singapore 8% New Zealand 6% France 3% Fiji (1996 est.)

Debt—external: $63 million (1996 est.)

Economic aid:

recipient: ODA $9.6 million from Australia (FY96/97 est.); $3.1 million from NZ (FY95/96)

Currency: 1 vatu (VT) = 100 centimes

Exchange rates: vatu (VT) per US$1—124.56 (January 1998) 115.87 (1997) 111.72 (1996) 112.11 (1995) 116.41 (1994) 121.58 (1993)

Fiscal year: calendar year