Mother Earth Travel > Country Index > Nauru > Map Economy |
| Economy - overview: Revenues of this tiny island have come from
exports of phosphates, but reserves are expected to be exhausted within
five to ten years. Phosphate production has declined since 1989, as demand
has fallen in traditional markets and as the marginal cost of extracting
the remaining phosphate increases, making it less internationally
competitive. While phosphates have given Nauruans one of the highest per
capita incomes in the Third World, few other resources exist with most
necessities being imported, including fresh water from Australia.
The rehabilitation of mined land and the replacement of income from
phosphates are serious long-term problems. In anticipation of the
exhaustion of Nauru's phosphate deposits, substantial amounts of phosphate
income have been invested in trust funds to help cushion the transition
and provide for Nauru's economic future. The government has been borrowing
heavily from the trusts to finance fiscal deficits. To cut costs the
government has called for a freezing of wages, a reduction of over-staffed
public service departments, privatization of numerous government agencies,
and closure of some overseas consulates. In recent years Nauru has
encouraged the registration of offshore banks and corporations. Tens of
billions of dollars have been channeled through their accounts. Few
comprehensive statistics on the Nauru economy exist, with estimates of
Nauru's per capita GDP varying widely. GDP:
purchasing power parity - $59 million (2000 est.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Nauru > Map Economy