Cook Islands Economy 1997

Economy - overview Like other South Pacific island nations, the Cook Islands' economicdevelopment is hindered by the isolation of the country from foreign markets,lack of natural resources, periodic devastation from natural disasters, andinadequate infrastructure. Agriculture provides the economic base with majorexports made up of copra and citrus fruit. Manufacturing activities are limitedto a fruit-processing plant and several clothing factories. Trade deficitsare made up for by remittances from emigrants and by foreign aid, largelyfrom New Zealand. In 1996, the government declared bankruptcy, citing a $120million public debt. Efforts to exploit tourism potential and expanding themining and fishing industries have not been enough to adequately deal withthe financial crisis. In an effort to stem further erosion of the tenuouseconomic situation, the government slashed public service salaries by 50%,condensed the number of government ministries from 52 to 22, reduced the numberof civil servants by more than half, began selling government assets, andclosed all overseas diplomatic posts except for the one in New Zealand.

GDP purchasing power parity - $57 million (1993 est.)

GDP - real growth rate NA%

GDP - per capita purchasing power parity - $3,000 (1993 est.)

GDP - composition by sector
agriculture: 17%
industry: 6%
services: 77% (FY90/91)

Inflation rate - consumer price index 5.8% (1994)

Labor force
total: 6,601 (1993)
by occupation: agriculture 29%, government 27%, services 25%, industry 15%, other 4%(1981)

Unemployment rate NA%

Budget
revenues: $NA
expenditures: $NA, including capital expenditures of $NA

Industries fruit processing, tourism

Industrial production growth rate NA%

Electricity - capacity 7,500 kW (1990)

Electricity - production 20 million kWh (1994)

Electricity - consumption per capita NA kWh

Agriculture - products copra, citrus, pineapples, tomatoes, bananas, yams, taro, coffee

Exports
total value: $3.9 million (f.o.b., 1993)
commodities: copra, fresh and canned citrus fruit, clothing, coffee, fish
partners: NZ 80%, Japan, Hong Kong

Imports
total value : $67 million (c.i.f., 1993)
commodities: foodstuffs, textiles, fuels, timber
partners: NZ 49%, Italy, Australia

Debt - external $160 million (1994)

Economic aid
recipient: ODA, $1.275 million from Australia (FY96/97 est.); $5.4 million in budgetsupport and $3.2 million in project and training aid from New Zealand, thecountry's largest source of aid (FY95/96)

Currency 1 New Zealand dollar (NZ$) = 100 cents

Exchange rates New Zealand dollars (NZ$) per US$1 - 1.4247 (January 1997), 1.4543 (1996),1.5235 (1995), 1.6844 (1994), 1.8495 (1993), 1.8584 (1992)

Fiscal year 1 April - 31 March

NOTE: The information regarding Cook Islands on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Cook Islands Economy 1997 information contained here. All suggestions for corrections of any errors about Cook Islands Economy 1997 should be addressed to the CIA.