Mother Earth Travel > Country Index > Tuvalu > Map Economy |
| Economy - overview: Tuvalu consists of a densely populated,
scattered group of nine coral atolls with poor soil. The country has no
known mineral resources and few exports. Subsistence farming and fishing
are the primary economic activities. Government revenues largely come from
the sale of stamps and coins and worker remittances. About 1,000 Tuvaluans
work in Nauru in the phosphate mining industry. Nauru has begun
repatriating Tuvaluans, however, as phosphate resources decline.
Substantial income is received annually from an international trust fund
established in 1987 by Australia, NZ, and the UK and supported also by
Japan and South Korea. Thanks to wise investments and conservative
withdrawals, this Fund has grown from an initial $17 million to over $35
million in 1999. The US government is also a major revenue source for
Tuvalu, with 1999 payments from a 1988 treaty on fisheries at about $9
million, a total which is expected to rise annually. In an effort to
reduce its dependence on foreign aid, the government is pursuing public
sector reforms, including privatization of some government functions and
personnel cuts of up to 7%. In 1998, Tuvalu began deriving revenue from
use of its area code for "900" lines and in 2000, from the lease
of its ".tv" Internet domain name. Royalties from these new
technology sources could raise GDP three or more times over the next
decade. In 1999, with merchandise exports falling and financing reaching
less than 5% of imports, continued reliance was placed on fishing and
telecommunications license fees, remittances from overseas workers,
official transfers, and investment income from overseas assets to cover
the trade deficit. GDP: purchasing power parity - $11.6 million
(1999 est.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Tuvalu > Map Economy