Region: Oceania

Capital: Papeete

Population: 266,339 (July 2004 est.)

Surface Area: 4,167 sq km

Currency: Comptoirs Francais du Pacifique franc (XPF)

GDP per capita: Purchasing Power Parity - $17,500 (2001 est.)

Background:
The French annexed various Polynesian island groups during the 19th century. In September 1995, France stirred up widespread protests by resuming nuclear testing on the Mururoa atoll after a three-year moratorium. The tests were suspended in January 1996.

Economy – Overview:
Since 1962, when France stationed military personnel in the region, French Polynesia has changed from a subsistence agricultural economy to one in which a high proportion of the work force is either employed by the military or supports the tourist industry. With the halt of French nuclear testing in 1996, the military contribution to the economy fell sharply. Tourism accounts for about one-fourth of GDP and is a primary source of hard currency earnings. Other sources of income are pearl farming and deep-sea commercial fishing. The small manufacturing sector primarily processes agricultural products. The territory benefits substantially from development agreements with France aimed principally at creating new businesses and strengthening social services.