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Region:
Oceania
Capital:
Alofi
Population:
2,156 (July 2004
est.)
Surface
area: 260
sq km
Currency:
New Zealand dollar
(NZD)
GDP
per capita:
purchasing power
parity - $3,600
(2000 est.)
Background:
Niue's remoteness,
as well as cultural
and linguistic
differences between
its Polynesian
inhabitants and
those of the
rest of the Cook
Islands, has
caused it to
be separately
administered.
The population
of the island
continues to
drop (from a
peak of 5,200
in 1966 to about
2,100 in 2004),
with substantial
emigration to
New Zealand,
2,400 km to the
southwest.
Economy
– Overview:
The economy suffers
from the typical
Pacific island
problems of geographic
isolation, few
resources, and
a small population.
Government expenditures
regularly exceed
revenues, and
the shortfall
is made up by
critically needed
grants from New
Zealand that
are used to pay
wages to public
employees. Niue
has cut government
expenditures
by reducing the
public service
by almost half.
The agricultural
sector consists
mainly of subsistence
gardening, although
some cash crops
are grown for
export. Industry
consists primarily
of small factories
to process passion
fruit, lime oil,
honey, and coconut
cream. The sale
of postage stamps
to foreign collectors
is an important
source of revenue.
The island in
recent years
has suffered
a serious loss
of population
because of migration
of Niueans to
New Zealand.
Efforts to increase
GDP include the
promotion of
tourism and a
financial services
industry, although
Premier LAKATANI
announced in
February 2002
that Niue will
shut down the
offshore banking
industry. Economic
aid from New
Zealand in 2002
was about $2.6
million.
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