Nauru Economy - 2004

Economy - overview:
Revenues of this tiny island have come from exports of phosphates, but reserves are expected to be exhausted within a few years. Phosphate production has declined since 1989, as demand has fallen in traditional markets and as the marginal cost of extracting the remaining phosphate increases, making it less internationally competitive. While phosphates have given Nauruans one of the highest per capita incomes in the Third World, few other resources exist with most necessities being imported, including fresh water from Australia. The rehabilitation of mined land and the replacement of income from phosphates are serious long-term problems. In anticipation of the exhaustion of Nauru's phosphate deposits, substantial amounts of phosphate income have been invested in trust funds to help cushion the transition and provide for Nauru's economic future. The government has been borrowing heavily from the trusts to finance fiscal deficits. To cut costs the government has called for a freeze on wages, a reduction of over-staffed public service departments, privatization of numerous government agencies, and closure of some overseas consulates. In recent years Nauru has encouraged the registration of offshore banks and corporations. Tens of billions of dollars have been channeled through their accounts. Few comprehensive statistics on the Nauru economy exist, with estimates of Nauru's GDP varying widely.

GDP:
purchasing power parity - $60 million (2001 est.)

GDP - real growth rate:
NA%

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

GDP - composition by sector:
agriculture: NA%
industry: NA%
services: NA%

Population below poverty line:
NA%

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

Inflation rate (consumer prices):
-3.6% (1993)

Labor force - by occupation:
employed in mining phosphates, public administration, education, and transportation

Unemployment rate:
0% (2002 est.)

Budget:
revenues: $23.4 million
expenditures: $64.8 million, including capital expenditures of $NA (FY95/96)

Industries:
phosphate mining, offshore banking, coconut products

Industrial production growth rate:
NA%

Electricity - production:
30 million kWh (2001)

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

Electricity - consumption:
27.9 million kWh (2001)

Electricity - exports:
0 kWh (2001)

Electricity - imports:
0 kWh (2001)

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

Oil - consumption:
1,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Agriculture - products:
coconuts

Exports:
$18 million f.o.b. (2002)

Exports - commodities:
phosphates

Exports - partners:
India 44.4%, South Korea 16.7%, Australia 11.1%, Netherlands 5.6%, New Zealand 5.6%, US 5.6% (2002)

Imports:
$31 million c.i.f. (2002)

Imports - commodities:
food, fuel, manufactures, building materials, machinery

Imports - partners:
Australia 61.3%, US 9.7%, Ireland 6.5%, Malaysia 6.5% (2002)

Debt - external:
$33.3 million (2002)

Economic aid - recipient:
$2.25 million from Australia (FY96/97 est.) (2000 est.)

Currency:
Australian dollar (AUD)

Currency code:
AUD

Exchange rates:
Australian dollars per US dollar - 1.5419 (2003), 1.2641 (2002) 1.9320 (2001), 1.7173 (2000), 1.5497 (1999)