Economy—overview: Like many other South Pacific island nations the Cook Islands' economic development is hindered by the isolation of the country from foreign markets lack of natural resources periodic devastation from natural disasters and inadequate infrastructure. Agriculture provides the economic base with major exports made up of copra and citrus fruit. Manufacturing activities are limited to fruit-processing clothing and handicrafts. Trade deficits are made up for by remittances from emigrants and by foreign aid overwhelmingly from New Zealand. In 1996 the government declared bankruptcy citing a $120 million public debt. Efforts to exploit tourism potential and expanding the mining and fishing industries have not been enough to adequately deal with the financial crisis. In an effort to stem further erosion of the economy the government slashed public service salaries by 50% condensed the number of government ministries from 52 to 22 reduced the number of civil servants by more than half began selling government assets and closed all overseas diplomatic posts except for the one in New Zealand.
GDP: purchasing power parity—$79 million (1994 est.)
GDP—real growth rate: NA%
GDP—per capita: purchasing power parity—$4 000 (1994 est.)
GDP—composition by sector: agriculture: 17% industry: 6% services: 77% (FY90/91)
Exports: total value: $4.2 million (f.o.b. 1994 est.) commodities: copra fresh and canned citrus fruit coffee; fish; pearls and pearl shells; clothing partners: NZ 80% Japan Hong Kong (1993)
Imports: total value: $85 million (c.i.f. 1994) commodities: foodstuffs textiles fuels timber capital goods partners: NZ 49% Italy Australia (1993)
Debt—external: $160 million (1994)
Economic aid: recipient: roughly $16 million annually 1985-95 with New Zealand furnishing 88% of the total
Currency: 1 New Zealand dollar (NZ$) = 100 cents
Exchange rates: New Zealand dollars (NZ$) per US$1—1.7283 (January 1998) 1.5083 (1997) 1.4543 (1996) 1.5235 (1995) 1.6844 (1994) 1.8495 (1993)
