Niue
Country Report
Niue’s remoteness, as well as cultural and linguistic differences between its Polynesian inhabitants and those of the adjacent Cook Islands, has caused it to be separately administered by New Zealand. The population of the island has trended downwards over recent decades (from a peak of 5,200 in 1966 to 1,618 in 2017) with substantial emigration to New Zealand 2,400 km to the southwest.d 2022, per the Noumea Accord.
Location
Oceania, island in the South Pacific Ocean, east of Tonga
Land Mass
261.46 sq km
Official Languages
English, Niuean
Exclusive Economic Zone
1.620 sq km
Head of State
Toke Talagi
Capital
Alofi
Status
Unitarian Parliamentary Monarchy
Economy
The economy suffers from the typical Pacific island problems of geographic isolation, few resources, and a small population. The agricultural sector consists mainly of subsistence gardening, although some cash crops are grown for export. Industry consists primarily of small factories for processing passion fruit, lime oil, honey, and coconut cream. The sale of postage stamps to foreign collectors is an important source of revenue.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. Economic aid allocation from New Zealand in FY13/14 was US$10.1 million. Niue has cut government expenditures by reducing the public service by almost half.
The island in recent years has suffered a serious loss of population because of emigration to New Zealand. Efforts to increase GDP include the promotion of tourism and financial services, although the International Banking Repeal Act of 2002 resulted in the termination of all offshore banking licenses.