Cook Islands Economy - 2004

Economy - overview:
Like many other South Pacific island nations, the Cook Islands' economic development is hindered by the isolation of the country from foreign markets, the limited size of domestic markets, lack of natural resources, periodic devastation from natural disasters, and inadequate infrastructure. Agriculture provides the economic base with major exports made up of copra and citrus fruit. Manufacturing activities are limited to fruit processing, clothing, and handicrafts. Trade deficits are offset by remittances from emigrants and by foreign aid, overwhelmingly from New Zealand. In the 1980s and 1990s, the country lived beyond its means, maintaining a bloated public service and accumulating a large foreign debt. Subsequent reforms, including the sale of state assets, the strengthening of economic management, the encouragement of tourism, and a debt restructuring agreement, have rekindled investment and growth.

GDP:
purchasing power parity - $105 million (2001 est.)

GDP - real growth rate:
7.1% (2001 est.)

GDP - per capita:
purchasing power parity - $5,000 (2001 est.)

GDP - composition by sector:
agriculture: 17%
industry: 7.8%
services: 75.2% (2000 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
3.2% (2000 est.)

Labor force:
8,000 (1996)

Labor force - by occupation:
agriculture 29%, industry 15%, services 56%
note: shortage of skilled labor (1995)

Unemployment rate:
13% (1996)

Budget:
revenues: $28 million
expenditures: $27 million, including capital expenditures of $3.3 million (FY00/01 est.)

Industries:
fruit processing, tourism, fishing, clothing, handicrafts

Industrial production growth rate:
1% (2002)

Electricity - production:
27.43 million kWh (2001)

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
other: 0% (2001)
nuclear: 0%

Electricity - consumption:
25.51 million kWh (2001)

Electricity - exports:
0 kWh (2001)

Electricity - imports:
0 kWh (2001)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
450 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Agriculture - products:
copra, citrus, pineapples, tomatoes, beans, pawpaws, bananas, yams, taro, coffee; pigs, poultry

Exports:
$9.1 million (2000)

Exports - commodities:
copra, papayas, fresh and canned citrus fruit, coffee; fish; pearls and pearl shells; clothing

Exports - partners:
Australia 34%, Japan 27%, New Zealand 25%, US 8% (2000)

Imports:
$50.7 million (2000)

Imports - commodities:
foodstuffs, textiles, fuels, timber, capital goods

Imports - partners:
NZ 61%, Fiji 19%, US 9%, Australia 6%, Japan 2% (2000)

Debt - external:
$141 million (1996 est.)

Economic aid - recipient:
$13.1 million; note - New Zealand continues to furnish the greater part (1995)

Currency:
New Zealand dollar (NZD)

Currency code:
NZD

Exchange rates:
New Zealand dollars per US dollar - 1.7229 (2003), 2.1622 (2002), 2.3776 (2001), 2.1863 (2000), 1.8886 (1999)