Cook Islands Economy
Economy - overviewLike 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
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.)
Agriculture - products
copra, citrus, pineapples, tomatoes, beans, pawpaws, bananas, yams, taro, coffee; pigs, poultry
Industries
fruit processing, tourism, fishing, clothing, handicrafts
Industrial production growth rate
1% (2002)
Electricity - production
27.43 million kWh (2001)
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 (2001)
Oil - imports
NA (2001)
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
New Zealand 61%, Fiji 19%, US 9%, Australia 6%, Japan 2% (2000)
Debt - external
$141 million (1996 est.)
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)
