Part 848

Economy

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%.

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: 2.9% (1989)

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)

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

Exchange rates: Tuvaluan dollars ($T) or Australian dollars ($A) per US$1 - 1.2835 (January 1997), 1.2773 (1996), 1.3486 (1995), 1.3667 (1994), 1.4704 (1993), 1.3600 (1992)

Fiscal year: calendar year

@Tuvalu:Communications

Telephones: 130 (1983 est.)

Telephone system: domestic: radiotelephone communications between islands international: NA

Radio broadcast stations: AM 1, FM 0, shortwave 0

Radios: 4,000 (1993 est.)