Economy - overview A remote country of 33 scattered coral atolls, Kiribati has few national resources. Commercially viable phosphate deposits were exhausted at the time of independence from the UK in 1979. Copra and fish now represent the bulk of production and exports. The economy has fluctuated widely in recent years. Real GDP growth has declined from about 10% in 1988 to about 2.6% in 1995 and 1.9% in 1996. Growth in 1997 was expected to parallel the 1996 performance. Economic development is constrained by a shortage of skilled workers, weak infrastructure, and remoteness from international markets. The financial sector is at an early stage of development as is the expansion of private sector initiatives. Foreign financial aid, largely from the UK and Japan, is a critical supplement to GDP, equal in amount to 25%-50% of GDP in recent years. Remittances from workers abroad account for more than $5 million each year.

GDP purchasing power parity - $62 million (1996 est.)

GDP - real growth rate 1.9% (1996 est.)

GDP - per capita purchasing power parity - $800 (1996 est.)

GDP - composition by sector
agriculture: 14%
industry: 7%
services: 79% (1996 est.)

Inflation rate - consumer price index -0.6% (1996 est.)

Labor force
total: 7,870 economically active, not including subsistence farmers (1985 est.)

Unemployment rate 2%; underemployment 70% (1992 est.)

Budget
revenues: $33.3 million
expenditures: $47.7 million, including capital expenditures of $NA million (1996 est.)

Industries fishing, handicrafts

Industrial production growth rate 0.7% (1992 est.)

Electricity - capacity 2,000 kW (1995)

Electricity - production 7 million kWh (1995)

Electricity - consumption per capita 88 kWh (1995)

Agriculture - products copra, taro, breadfruit, sweet potatoes, vegetables; fish

Exports
total value: $6.7 million (f.o.b., 1996 est.)
commodities: copra 62%, seaweed, fish
partners: US, Australia, NZ (1996)

Imports
total value: $37.4 million (c.i.f., 1996 est.)
commodities: foodstuffs, machinery and equipment, miscellaneous manufactured goods, fuel
partners: Australia 46%, Fiji, Japan, NZ, US (1996)

Debt - external $7.2 million (1996 est.)

Economic aid
recipient: ODA, $4.725 million from Australia (FY96/97 est.); $2.175 million from NZ (FY95/96)

Currency 1 Australian dollar ($A) = 100 cents

Exchange rates Australian dollars ($A) per US$1 - 1.5281 (January 1998), 1.3439 (1997), 1.2773 (1996), 1.3486 (1995), 1.3667 (1994), 1.4704 (1993)

Fiscal year NA

NOTE: The information regarding Kiribati on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Kiribati Economy 1998 information contained here. All suggestions for corrections of any errors about Kiribati Economy 1998 should be addressed to the CIA.