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 (2016)

GDP:

purchasing power parity – $10 million (2003),

GDP – real growth rate:

6.2% (2003 est.)

GDP – composition by sector:

<br>agriculture:

23% (2003)

Household income or consumption by percentage share:

<br>lowest 10%:

NA%

<br>highest 10%:

NA%

Inflation rate (consumer prices):

1% (1995)

Labor force:

450 (1992 est.) 663 (2001 est.)<br>expenditures:

$16.33 million USD$1.391 million (2016)

Imports – commodities:

food, live animals, manufactured goods, machinery, fuels, lubricants, chemicals, drugs

In 2014: Special Purpose Ships ($5.48M), Refined Petroleum ($2.93M), Large Construction Vehicles ($403k), Prefabricated Buildings ($402k) and Cars ($312k).

Imports – partners:

New Zealand 59%, Fiji 20%, Japan 13%, Samoa, Australia, United States

In 2014: