ALOFI, THE CAPITAL OF NIUE
MAP OF NIUE
FLAG OF NIUECapital: Alofi
Population: 2,456 (July 2010 est.)
Surface area: 260 sq km
Currency: New Zealand dollar (NZD)
GDP per capita: purchasing power parity - $5,600 (2010 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 2010), 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 2009 was about $3.5 million.
