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 NA%

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

Industrial production growth rate NA%

Electricity - production 24 million kWh (2000)

Electricity - production by source
fossil fuel: 100%
hydro: 0%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 22.32 million kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 0 kWh (2000)

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

Exports $9.1 million (f.o.b., 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 (c.i.f., 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 (1995); note - New Zealand continues to furnish the greater part

Currency New Zealand dollar (NZD)

Currency code NZD

Exchange rates New Zealand dollars per US dollar - 2.3535 (January 2002), 2.3776 (2001), 2.1863 (2000), 1.8886 (1999), 1.8632 (1998), 1.5083 (1997)

Fiscal year 1 April - 31 March

NOTE: The information regarding Cook Islands on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Cook Islands Economy 2002 information contained here. All suggestions for corrections of any errors about Cook Islands Economy 2002 should be addressed to the CIA.