Tuvalu Economy 2016

Tuvalu Economy 2016

Page last updated on June 20, 2014

Economy - overview:
Tuvalu consists of a densely populated, scattered group of nine coral atolls with poor soil. Only eight of the atolls are inhabited. The country has no known mineral resources and few exports and is almost entirely dependent upon imported food and fuel. Subsistence farming and fishing are the primary economic activities. Fewer than 1,000 tourists, on average, visit Tuvalu annually. Job opportunities are scarce and public sector workers make up most of those employed. About 15% of the adult male population work as seamen on merchant ships abroad, and remittances are a vital source of income contributing around $2 million in 2007. Substantial income is received annually from the Tuvalu Trust Fund (TTF) an international trust fund established in 1987 by Australia, NZ, and the UK and supported also by Japan and South Korea. Thanks to wise investments and conservative withdrawals, this fund grew from an initial $17 million to an estimated value of $77 million in 2006. The TTF contributed nearly $9 million towards the government budget in 2006 and is an important cushion for meeting shortfalls in the government's budget. The US Government is also a major revenue source for Tuvalu because of payments from a 1988 treaty on fisheries. In an effort to ensure financial stability and sustainability, the government is pursuing public sector reforms, including privatization of some government functions and personnel cuts. Tuvalu also derives royalties from the lease of its ".tv" Internet domain name with revenue of more than $2 million in 2006. A minor source of government revenue comes from the sale of stamps and coins. With merchandise exports only a fraction of merchandise imports, continued reliance must be placed on fishing and telecommunications license fees, remittances from overseas workers, official transfers, and income from overseas investments. Growing income disparities and the vulnerability of the country to climatic change are among leading concerns for the nation.

GDP (purchasing power parity):
$40 million (2013 est.)
country comparison to the world: 226

$39.53 million (2012 est.)
$39.19 million (2011 est.)
note: data are in 2013 US dollars
[see also: GDP country ranks ]

GDP (official exchange rate):
$38 million (2013 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
1.1% (2013 est.)
country comparison to the world: 173

0.2% (2012 est.)
8.5% (2011 est.)
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$3,500 (2013 est.)
country comparison to the world: 174

$3,500 (2012 est.)
$3,500 (2011 est.)
note: data are in 2013 US dollars
[see also: GDP - per capita country ranks ]

GDP - composition, by sector of origin:
agriculture: 16.6%
industry: 27.2%
services: 56.2% (2002)

Agriculture - products:
coconuts; fish

fishing, tourism, copra

Industrial production growth rate:
[see also: Industrial production growth rate country ranks ]

Labor force:
3,615 (2004 est.)
country comparison to the world: 224
[see also: Labor force country ranks ]

Labor force - by occupation:
note: people make a living mainly through exploitation of the sea, reefs, and atolls and through overseas remittances (mostly from workers in the phosphate industry and sailors)

Unemployment rate:
[see also: Unemployment rate country ranks ]

Population below poverty line:
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

revenues: $21.54 million
expenditures: $23.05 million (2006)

Taxes and other revenues:
56.7% of GDP (2006)
country comparison to the world: 7
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-4% of GDP (2006)
country comparison to the world: 145
[see also: Budget surplus (+) or deficit (-) country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
3.8% (2006 est.)
country comparison to the world: 129
[see also: Inflation rate (consumer prices) country ranks ]

Current account balance:
-$7.7 million (2010 est.)
country comparison to the world: 62

-$11.68 million (2003)
[see also: Current account balance country ranks ]

$600,000 (2010 est.)
country comparison to the world: 219

$1 million (2004 est.)
[see also: Exports country ranks ]

Exports - commodities:
copra, fish

$16.5 million (2010 est.)
country comparison to the world: 220

$12.91 million (2005)
[see also: Imports country ranks ]

Imports - commodities:
food, animals, mineral fuels, machinery, manufactured goods

Debt - external:
[see also: Debt - external country ranks ]

Exchange rates:
Tuvaluan dollars or Australian dollars (AUD) per US dollar -

1.031 (2011)
1.67 (2011 est.)
1.67 (2010)
1.2822 (2009)
1.2059 (2008)

NOTE: The information regarding Tuvalu on this page is re-published from the 2016 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Tuvalu Economy 2016 information contained here. All suggestions for corrections of any errors about Tuvalu Economy 2016 should be addressed to the CIA.

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