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Economy of the Cook Islands

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Title: Economy of the Cook Islands  
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Subject: Economy of New Caledonia, Economy of New Zealand, Economy of the Cook Islands, Economy of Palau, Economy of Guam
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Economy of the Cook Islands

The economy of the Cook Islands, as in many other South Pacific nations, is hindered by the isolation of the country from foreign markets, lack of natural resources, periodic devastation from natural disasters, and inadequate infrastructure.

Tourism provides the economic base with minor exports made up of tropical and citrus fruit. Manufacturing activities are limited to fruit-processing, clothing, and handicrafts.

Trade deficits are made up for by remittances from emigrants and by foreign aid, overwhelmingly from New Zealand. Efforts to exploit tourism potential, encourage offshore banking, and expand the mining and fishing industries have been partially successful in stimulating investment and growth.

Contents

  • Banking and finance 1
  • Economic statistics 2
  • Telecommunications 3
  • References 4

Banking and finance

The Cook Islands has "Home Rule" with respect to banking, similar to Guernsey, Jersey and the Isle of Man.

This "Home Rule" banking confuses New Zealanders on vacation in the Cooks. Cook automated teller machines often fail to fully disclose the fact that the Cooks are not part of the New Zealand banking system, thus legally requiring banks to charge the same fees for withdrawing or transferring money as if the person was in Australia or the EU. The New Zealand dollar is the official currency of the Cook Islands, adding to the confusion. Cook Islanders are NZ citizens.

The banking and incorporation laws of the Cook Islands make it an important centre for setting up companies that are involved in global trade.

Economic statistics

GDP
Purchasing power parity - $183.2 million (2005 est.)
GDP - real growth rate
0.1% (2005 estimate)
GDP - per capita
$9 100 (2005 estimate)
GDP - composition by sector
  • Agriculture: 15.1%
  • Industry: 9.6%
  • Services: 75.3% (2000)
Population below poverty line
NA%
Household income or consumption by percentage share
  • Lowest 10%: NA%
  • Highest 10%: NA%
Inflation rate (consumer prices)
2.1% (2005 est.)
Labor force
6,820 (2001)
Labor force - by occupation
Agriculture 29%, industry 15%, services 56% (1995)
Unemployment rate
13.1% (2005)
Budget
  • Revenues: $70.95 million
  • Expenditures: $69.05 million; including capital expenditures of $5.744 million (FY00/01 est.)
Industries
Fruit processing, tourism, fishing, clothing, handicrafts
Industrial production growth rate
1% (2002)
Electricity - production
28 GW·h (2003)
Electricity - production by source
  • Fossil fuel: 100%
  • Hydro: 0%
  • Nuclear: 0%
  • Other: 0% (2001)
Electricity - consumption
34.46 GW·h (2005 est)
Electricity - exports
0 kW·h (2003)
Electricity - imports
0 kW·h (2003)
Oil consumption
400 bbl/d (64 m3/d) (2003)
Agriculture - products
Copra, citrus, pineapples, tomatoes, beans, pawpaws, bananas, yams, taro, coffee, pigs, poultry
Exports
$5.222 million (2005)
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% (2004)
Imports
$81.04 million (2005)
Imports - commodities
Foodstuffs, textiles, fuels, timber, capital goods
Imports - partners
New Zealand 61%, Fiji 19%, US 9%, Australia 6%, Japan 2% (2004)
Debt - external
$141 million (1996 est.)
Economic aid - recipient
$13.1 million (1995); note - New Zealand furnishes the greater part
Currency
1 New Zealand dollar (NZ$) = 100 cents
Exchange rates
New Zealand dollars (NZ$) per US$1 - 1.4203 (2005), 1.9451 (January 2000), 1.8886 (1999), 1.8632 (1998), 1.5083 (1997), 1.4543 (1996), 1.5235 (1995)
Fiscal year
1 April–31 March

Telecommunications

Telecom Cook Islands Ltd (TCI) is the sole provider of telecommunications in the Cook Islands. TCI is a private company owned by Spark New Zealand Ltd (60%) and the Cook Islands Government (40%). In operation since July 1991, TCI provides local, national and international telecommunications as well as internet access on all islands except Suwarrow. Communications to Suwarrow is via HF radio.

References

  • CIA World Factbook, 2006
  • Cook Islands banking explained from TVNZ program Fair Go [1].
  • International calling info [2]
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