Economy - overview Tuvalu consists of a densely populated, scattered group of nine coral atolls with poor soil. The country has no known mineral resources and few exports. Subsistence farming and fishing are the primary economic activities. The islands are too small and too remote for development of a large-scale tourist industry. Government revenues largely come from the sale of stamps and coins and worker remittances. About 1,000 Tuvaluans work in Nauru in the phosphate mining industry. Nauru has begun repatriating Tuvaluans, however, as phosphate resources decline, which will present additional problems for Tuvalu's already stretched economy. Substantial income is received annually from an international trust fund established in 1987 by Australia, NZ, and the UK and supported also by Japan and South Korea. In an effort to reduce its dependence on foreign aid, the government is pursuing public sector reforms, including privatization of some government functions and personnel cuts of up to 7%. Low-lying Tuvalu is particularly vulnerable to any future global warming.

GDP purchasing power parity - $7.8 million (1995 est.)

GDP - real growth rate 8.7% (1995)

GDP - per capita purchasing power parity - $800 (1995 est.)

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

Inflation rate - consumer price index 3.9% (average 1985-93)

Labor force NA
by occupation: NA
note: people make a living mainly through exploitation of the sea, reefs, and atolls and from wages sent home by those working abroad (mostly workers in the phosphate industry and sailors)

Unemployment rate NA%

Budget
revenues: $4.3 million
expenditures: $4.3 million, including capital expenditures of $NA (1989 est.)

Industries fishing, tourism, copra

Industrial production growth rate NA%

Electricity - capacity 2,600 kW (1995)

Electricity - production 3 million kWh (1995)

Electricity - consumption per capita NA kWh

Agriculture - products coconuts; fish

Exports
total value: $165,000 (f.o.b., 1989)
commodities: copra
partners: Fiji, Australia, NZ

Imports
total value: $4.4 million (c.i.f., 1989)
commodities: food, animals, mineral fuels, machinery, manufactured goods
partners: Fiji, Australia, NZ

Debt - external $NA

Economic aid
recipient: ODA, $1.725 million from Australia (FY96/97 est.); $1.7 million from NZ (FY95/96); note: substantial annual support from an international trust fund

Currency 1 Tuvaluan dollar ($T) or 1 Australian dollar ($A) = 100 cents

Exchange rates Tuvaluan dollars ($T) or Australian dollars ($A) per US$1 - 1.5281 (January 1998), 1.3439 (1997), 1.2773 (1996), 1.3486 (1995), 1.3667 (1994), 1.4704 (1993)

Fiscal year calendar year

NOTE: The information regarding Tuvalu on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Tuvalu Economy 1998 information contained here. All suggestions for corrections of any errors about Tuvalu Economy 1998 should be addressed to the CIA.