Economy - overview The economy has traditionally been based on agriculture. Sugarcane has been the primary crop for more than a century, and in some years it accounts for 85% of exports. The government has been pushing the development of a tourist industry to relieve high unemployment, which amounts to more than 40% of the labor force. The gap in Reunion between the well-off and the poor is extraordinary and accounts for the persistent social tensions. The white and Indian communities are substantially better off than other segments of the population, often approaching European standards, whereas minority groups suffer the poverty and unemployment typical of the poorer nations of the African continent. The outbreak of severe rioting in February 1991 illustrates the seriousness of socioeconomic tensions. The economic well-being of Reunion depends heavily on continued financial assistance from France.

GDP purchasing power parity - $3.4 billion (1998 est.)

GDP - real growth rate 3.8% (1998 est.)

GDP - per capita purchasing power parity - $4,800 (1998 est.)

GDP - composition by sector
agriculture: NA%
industry: NA%
services: NA%

Population below poverty line NA%

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

Inflation rate (consumer prices) NA%

Labor force 261,000 (1995)

Labor force - by occupation agriculture 8%, industry 19%, services 73% (1990)

Unemployment rate 42.8% (1998)

Budget
revenues: NA
expenditures: NA, including capital expenditures of $NA

Industries sugar, rum, cigarettes, handicraft items, flower oil extraction

Industrial production growth rate NA%

Electricity - production 1.09 billion kWh (2000)

Electricity - production by source
fossil fuel: 55.05%
hydro: 44.95%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 1.014 billion kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 0 kWh (2000)

Agriculture - products sugarcane, vanilla, tobacco, tropical fruits, vegetables, corn

Exports $214 million (f.o.b., 1997)

Exports - commodities sugar 63%, rum and molasses 4%, perfume essences 2%, lobster 3%, (1993)

Exports - partners France 74%, Japan 6%, Comoros 4% (1994)

Imports $2.5 billion (c.i.f., 1997)

Imports - commodities manufactured goods, food, beverages, tobacco, machinery and transportation equipment, raw materials, and petroleum products

Imports - partners France 64%, Bahrain 3%, Germany 3%, Italy 3% (1994)

Debt - external $NA

Economic aid - recipient $NA; note - substantial annual subsidies from France

Currency euro (EUR); French franc (FRF)

Currency code EUR; FRF

Exchange rates euros per US dollar - 1.1324 (January 2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999); French francs per US dollar - 5.8995 (1998), 5.8367 (1997)

Fiscal year calendar year

NOTE: The information regarding Reunion on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Reunion Economy 2002 information contained here. All suggestions for corrections of any errors about Reunion Economy 2002 should be addressed to the CIA.