This article describes the economy of the Cook Islands. Like many other South Pacific island nations, the Cook Islands' economic development is hindered by the isolation of the country from foreign 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 made up for by remittances from emigrants and by foreign aid, overwhelmingly from New Zealand. Efforts to exploit tourism potential, encourage offshore banking, and expand the mining and fishing industries have been partially successful in stimulating investment and growth.

GDP

Purchasing power parity - $112 million (1998 est.)

GDP - real growth rate

NA%

GDP - per capita

Purchasing power parity - $5,600 (1998 est.)

GDP - composition by sector

• Agriculture: 18%
• Industry: 9%
• Services: 73% (1995)

Population below poverty line

NA%

Household income or consumption by percentage share

• Lowest 10%: NA%
• Highest 10%: NA%

Inflation rate (consumer prices)

2.6% (1994 est.)

Labor force

6,601 (1993)

Labor force - by occupation

Agriculture 29%, industry 15%, services 56% (1995)

Unemployment rate

NA%

Budget

• Revenues: $NA
• Expenditures: $NA, including capital expenditures of $NA

Industries

Fruit processing, tourism

Industrial production growth rate

NA%

Electricity - production

15 GWh (1998)

Electricity - production by source

• Fossil fuel: 100%
• Hydro: 0%
• Nuclear: 0%
• Other: 0% (1998)

Electricity - consumption

14 GWh (1998)

Electricity - exports

0 kWh (1998)

Electricity - imports

0 kWh (1998)

Agriculture - products

Copra, citrus, pineapples, tomatoes, beans, pawpaws, bananas, yams, taro, coffee

Exports

$4.2 million (f.o.b., 1994 est.)

Exports - commodities

Copra, papayas, fresh and canned citrus fruit, coffee; fish; pearls and pearl shells; clothing

Exports - partners

NZ 80%, Japan, Hong Kong (1993)

Imports

$85 million (c.i.f., 1994)

Imports - commodities

Foodstuffs, textiles, fuels, timber, capital goods

Imports - partners

NZ 49%, Italy, Australia (1993)

Debt - external

$141 million (1996 est.)

Economic aid - recipient

$13.1 million (1995); note - New Zealand furnishes the greater part

Currency

1 New Zealand dollar (NZ$) = 100 cents

Exchange rates

New Zealand dollars (NZ$) per US$1 - 1.9451 (January 2000), 1.8886 (1999), 1.8632 (1998), 1.5083 (1997), 1.4543 (1996), 1.5235 (1995)

Fiscal year

1 April - 31 March

See also: Cook Islands