Economy of the Cook Islands: Difference between revisions

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{{Update|date=September 2022}}
{{Update|date=September 2022}}
[[File:Pukapuka_PV_2015.jpg|thumb|right|alt=A solar panel array on Pukapuka, Cook Islands. |A solar panel array on [[Pukapuka]]]]
[[File:Pukapuka_PV_2015.jpg|thumb|right|alt=A solar panel array on Pukapuka, Cook Islands. |A solar panel array on [[Pukapuka]]]]
The '''economy of the Cook Islands''' is based mainly on tourism, with minor exports made up of [[tropical]] and citrus fruit. Manufacturing activities are limited to fruit-processing, clothing and handicrafts.
The '''economy of the Cook Islands''' is based mainly on tourism, with minor exports of [[tropical]] and citrus fruit. Manufacturing activities in the [[Cook Islands]] are limited to fruit-processing, clothing and handicrafts.


As in many other [[Polynesia|South Pacific]] nations, the [[Cook Islands]]'s economy is hindered by the country's isolation from foreign markets, lack of natural resources aside from fish, periodic devastation from natural disasters, and inadequate [[infrastructure]].
As in many other [[Polynesia|South Pacific]] nations, the economy is hindered by the country's isolation from foreign markets, lack of land<ref name=RNZ_202508 /> and other natural resources aside from fish, periodic devastation from natural disasters, inadequate [[infrastructure]], and lack of capital for diversification.<ref name=RNZ_202508 /> Efforts to exploit tourism potential, encourage offshore banking, and expand the mining and fishing industries have been partially successful in stimulating investment and growth. Trade deficits are made up for by remittances from emigrants and by foreign aid, overwhelmingly from [[New Zealand]].


Trade deficits are made up for by remittances from emigrants and by foreign aid, overwhelmingly from [[New Zealand]]. Efforts to exploit tourism potential, encourage offshore banking, and expand the mining and fishing industries have been partially successful in stimulating investment and growth.
==Tourism==
Tourism makes up about 70% of GDP, with visitor numbers at record levels in 2025, after rebounding following the [[COVID-19 pandemic]], when tourism collapsed due to closure of the border.<ref name=RNZ_202508 /><ref>{{cite web |title=Reviving Cook Islands' Tourism Industry |date=2022 |url= https://www.adb.org/multimedia/partnership-report2021/stories/reviving-cook-islands-tourism-industry/ |publisher=Asian Development Bank |access-date=13 November 2025}}</ref> Per capita GDP had dropped from US$22,121 (2019) to $16,268 (2021)<ref name=GDP-UNdata /> due to the pandemic and the economy's heavy reliance on tourism.<ref name=RNZ_202508>{{cite news |title=Cook Islands seeks balance as record tourism numbers put strain on local environment |first=Caleb |last=Fotheringham |date=8 August 2025 |url= https://www.rnz.co.nz/news/pacific/569369/cook-islands-seeks-balance-as-record-tourism-numbers-put-strain-on-local-environment |work=RNZ |access-date=13 November 2025}}</ref>


== Banking and finance ==
== Banking and finance ==
Line 23: Line 24:


== Telecommunications ==
== Telecommunications ==
[[Telecom Cook Islands]] Ltd (TCI) is the sole provider of [[telecommunications in the Cook Islands]]. It is a private company owned by [[Spark New Zealand]] Ltd (60%) and the Cook Islands Government (40%). In operation since July 1991, TCI provides local, national and international telecommunications as well as internet access on all islands except Suwarrow. Communications to Suwarrow is via [[HF radio]].
Telecom Cook Islands Ltd (TCI) is the sole provider of [[telecommunications in the Cook Islands]]. It is a private company owned by [[Spark New Zealand]] Ltd (60%) and the Cook Islands Government (40%). In operation since July 1991, TCI provides local, national and international telecommunications as well as internet access on all islands except Suwarrow. Communications to Suwarrow is via [[HF radio]].


== Economic statistics ==
== Statistics ==
; GDP:
; GDP:
: Purchasing power parity - $183.2 million (2005 est.)
: Purchasing power parity – $183.2 million (2005 est.)
; GDP - real growth rate: -.05% (2005); -1.2% (2014); -1.7% (2013). Growth in the Cook Islands has slowed due to a lack of infrastructure projects and accommodation capacity constraints in the tourism sector. Cook Islands economic activity is expected to be flat in FY2016; to grow by 0.2% in FY2017. Inflation 1.8% (FY2016); 2.0% (FY2017). Statistics Asian Development Bank
; GDP – per capita: US$30,033 (2025)<ref name=GDP-UNdata>{{Cite web |title=UNdata {{!}} record view {{!}} Per capita GDP at current prices – US dollars |url=https://data.un.org/Data.aspx?d=SNAAMA&f=grID:101;currID:USD;pcFlag:1;crID:184 |access-date=2024-05-27 |website=data.un.org}}</ref>
; GDP - per capita: $17,033 (2022)<ref>{{Cite web |title=UNdata {{!}} record view {{!}} Per capita GDP at current prices - US dollars |url=https://data.un.org/Data.aspx?d=SNAAMA&f=grID:101;currID:USD;pcFlag:1;crID:184 |access-date=2024-05-27 |website=data.un.org}}</ref>
; GDP – composition by sector:
; GDP - composition by sector:
:* Agriculture: 15.1%
:* Agriculture: 78.9%
:* Industry: 9.6%
:* Industry: 9.6%
:* Services: 75.3% (2000)
:* Services: 75.3% (2000)
Line 41: Line 41:
; Inflation rate (consumer prices):
; Inflation rate (consumer prices):
: 4.2% (2024 est.)<ref>{{Cite web |title=Consumer Price Index {{!}} Cook Islands Statistics Office |url=https://stats.gov.ck/consumer-price-index/ |access-date=2024-05-27 |language=en-US}}</ref>
: 4.2% (2024 est.)<ref>{{Cite web |title=Consumer Price Index {{!}} Cook Islands Statistics Office |url=https://stats.gov.ck/consumer-price-index/ |access-date=2024-05-27 |language=en-US}}</ref>
; Labor force:
; Labour force:
: 6,820 (2001)
: 6,820 (2001)
; Labor force - by occupation:
; Labour force – by occupation:
: Agriculture 29%, industry 15%, services 56% (1995)
: Agriculture 29%, industry 15%, services 56% (1995)
; Unemployment rate: 1.3% (2019)<ref>{{Cite web |date=30 May 2024 |title=Poverty Data: Cook Islands |url=https://www.adb.org/where-we-work/cook-islands/poverty |access-date=2024-05-27 |website=www.adb.org |language=en}}</ref>
; Unemployment rate: 1.3% (2019)<ref>{{Cite web |date=30 May 2024 |title=Poverty Data: Cook Islands |url=https://www.adb.org/where-we-work/cook-islands/poverty |access-date=2024-05-27 |website=www.adb.org |language=en}}</ref>
Line 53: Line 53:
; Industrial production growth rate:
; Industrial production growth rate:
: 1% (2002)
: 1% (2002)
; Electricity - production:
; Electricity – production:
: 28 GW·h (2003)
: 28 GW·h (2003)
; Electricity - production by source:
; Electricity – production by source:
:* Fossil fuel: 100%
:* Fossil fuel: 100%
:* Hydro: 0%
:* Hydro: 0%
:* Nuclear: 0%
:* Nuclear: 0%
:* Other: 0% (2001)
:* Other: 0% (2001)
; Electricity - consumption:
; Electricity – consumption:
: 34.46 GW·h (2005 est)
: 34.46 GW·h (2005 est)
; Electricity - exports:
; Electricity – exports:
: 0 kW·h (2003)
: 0 kW·h (2003)
; Electricity - imports:
; Electricity – imports:
: 0 kW·h (2003)
: 0 kW·h (2003)
; Oil consumption:
; Oil consumption:
: {{convert|400|oilbbl/d|abbr=on}} (2003)
: {{convert|400|oilbbl/d|abbr=on}} (2003)
; Agriculture - products:
; Agriculture – products:
: [[Copra]], [[citrus]], [[pineapple]]s, [[tomato]]es, [[bean]]s, [[papaya|pawpaw]]s, [[banana]]s, [[yam (vegetable)|yams]], [[taro]], [[coffee]], [[pig]]s, [[poultry]]
: [[Copra]], [[citrus]], [[pineapple]]s, [[tomato]]es, [[bean]]s, [[papaya|pawpaw]]s, [[banana]]s, [[yam (vegetable)|yams]], [[taro]], [[coffee]], [[pig]]s, [[poultry]]
; Exports:
; Exports:
: $5.222 million (2005)
: $5.222 million (2005)
; Exports - commodities:
; Exports – commodities:
: Copra, papayas, fresh and canned citrus fruit, coffee; fish; pearls and pearl shells; clothing
: Copra, papayas, fresh and canned citrus fruit, coffee; fish; pearls and pearl shells; clothing
; Exports - partners:
; Exports – partners:
: Australia 34%, Japan 27%, New Zealand 25%, US 8% (2004)
: Australia 34%, Japan 27%, New Zealand 25%, US 8% (2004)
; Imports:
; Imports:
: $81.04 million (2005)
: $81.04 million (2005)
; Imports - commodities:
; Imports – commodities:
: Foodstuffs, textiles, fuels, timber, capital goods
: Foodstuffs, textiles, fuels, timber, capital goods
; Imports - partners:
; Imports – partners:
: New Zealand 61%, Fiji 19%, US 9%, Australia 6%, Japan 2% (2004)
: New Zealand 61%, Fiji 19%, US 9%, Australia 6%, Japan 2% (2004)
; Debt - external:
; Debt – external:
: $141 million (1996 est.)
: $141 million (1996 est.)
; Economic aid - recipient:
; Economic aid – recipient:
: $13.1 million (1995); note - New Zealand furnishes the greater part
: $13.1 million (1995); note – New Zealand furnishes the greater part
; Currency:
; Currency:
: 1 New Zealand dollar (NZ$) = 100 cents
: 1 New Zealand dollar (NZ$) = 100 cents
; Exchange rates:
; Exchange rates:
: New Zealand dollars (NZ$) per US$1 - 1.4203 (2005), 1.9451 (January 2000), 1.8886 (1999), 1.8632 (1998), 1.5083 (1997), 1.4543 (1996), 1.5235 (1995)
: New Zealand dollars (NZ$) per US$1 – 1.4203 (2005), 1.9451 (January 2000), 1.8886 (1999), 1.8632 (1998), 1.5083 (1997), 1.4543 (1996), 1.5235 (1995)
; Fiscal year:
; Fiscal year:
: 1 April&ndash;31 March
: 1 April&ndash;31 March
Line 97: Line 97:


== External links ==
== External links ==
*[https://www.cia.gov/the-world-factbook/countries/cook-islands/ CIA World Factbook, 2006]
*[https://web.archive.org/web/20251112004910/https://www.cia.gov/the-world-factbook/countries/cook-islands/ CIA World Factbook, 2006]


{{Cook Islands topics}}
{{Cook Islands topics}}

Latest revision as of 03:15, 24 February 2026

TemplateStyles' src attribute must not be empty.

A solar panel array on Pukapuka, Cook Islands.
A solar panel array on Pukapuka

The economy of the Cook Islands is based mainly on tourism, with minor exports of tropical and citrus fruit. Manufacturing activities in the Cook Islands are limited to fruit-processing, clothing and handicrafts.

As in many other South Pacific nations, the economy is hindered by the country's isolation from foreign markets, lack of land[1] and other natural resources aside from fish, periodic devastation from natural disasters, inadequate infrastructure, and lack of capital for diversification.[1] Efforts to exploit tourism potential, encourage offshore banking, and expand the mining and fishing industries have been partially successful in stimulating investment and growth. Trade deficits are made up for by remittances from emigrants and by foreign aid, overwhelmingly from New Zealand.

Tourism

Tourism makes up about 70% of GDP, with visitor numbers at record levels in 2025, after rebounding following the COVID-19 pandemic, when tourism collapsed due to closure of the border.[1][2] Per capita GDP had dropped from US$22,121 (2019) to $16,268 (2021)[3] due to the pandemic and the economy's heavy reliance on tourism.[1]

Banking and finance

Banks in the Cook Islands are regulated under the Banking Act 2011.[4] Banks must be licensed and are supervised by the Cook Islands Financial Supervisory Commission.[5]

The Cook Islands developed an offshore financial services industry in the early 1980s.[6] Allegations that New Zealand-based companies were using it as a tax haven led to the Winebox Inquiry in New Zealand in the 1990s, and in 2000 it was listed as a tax haven by the OECD.[7] In 2002 it was delisted after it agreed to fiscal transparency and to exchange tax information.[8][9] Allegations of being a tax haven re-emerged in 2013 following the International Consortium of Investigative Journalists Offshore Leaks.[10][11] Trusts incorporated in the Cook Islands are used to provide anonymity and asset-protection.[12] The Cook Islands also featured in the Panama Papers,[13] Paradise Papers,[14][15] and Pandora Papers[16][17] financial leaks.

The Bank of the Cook Islands was created in 2001 by merging the Cook Islands Development Bank and the Cook Islands Savings Bank.[18] Economist Vaine Nooana-Arioka has been executive director of the Bank of the Cook Islands since 2008.[19]

Mining

In 2019, the Cook Islands passed the Sea Bed Minerals (SBM) Act.[20]

In 2022, the Cook Islands Seabed Minerals Authority (SBMA) granted three exploration licenses for polymetallic nodules within their Exclusive Economic Zone to private companies Cobalt (CIC) Limited, Moana Minerals Limited and Cook Islands Investment Company (CIIC) Seabed Resources Limited, which is co-owned by the Cook Islands Government. The licenses expire in 2027.[21]

In 2025, the Cook Islands announced that it had signed a five-year agreement with China focused on exploration and research into seabed minerals.[22]

Telecommunications

Telecom Cook Islands Ltd (TCI) is the sole provider of telecommunications in the Cook Islands. It is a private company owned by Spark New Zealand Ltd (60%) and the Cook Islands Government (40%). In operation since July 1991, TCI provides local, national and international telecommunications as well as internet access on all islands except Suwarrow. Communications to Suwarrow is via HF radio.

Statistics

GDP
Purchasing power parity – $183.2 million (2005 est.)
GDP – per capita
US$30,033 (2025)[3]
GDP – composition by sector
  • Agriculture: 15.1%
  • Industry: 9.6%
  • Services: 75.3% (2000)
Population below poverty line
28.4% of the population lives below the national poverty line. Statistics 2016 Asian Development Bank
Household income or consumption by percentage share
  • Lowest 10%: NA%
  • Highest 10%: NA%
Inflation rate (consumer prices)
4.2% (2024 est.)[23]
Labour force
6,820 (2001)
Labour force – by occupation
Agriculture 29%, industry 15%, services 56% (1995)
Unemployment rate
1.3% (2019)[24]
Budget
  • Revenues: $70.95 million
  • Expenditures: $69.05 million; including capital expenditures of $5.744 million (FY00/01 est.)
Industries
Fruit processing, tourism, fishing, clothing, handicrafts
Industrial production growth rate
1% (2002)
Electricity – production
28 GW·h (2003)
Electricity – production by source
  • Fossil fuel: 100%
  • Hydro: 0%
  • Nuclear: 0%
  • Other: 0% (2001)
Electricity – consumption
34.46 GW·h (2005 est)
Electricity – exports
0 kW·h (2003)
Electricity – imports
0 kW·h (2003)
Oil consumption
400 bbl/d (64 m3/d) (2003)
Agriculture – products
Copra, citrus, pineapples, tomatoes, beans, pawpaws, bananas, yams, taro, coffee, pigs, poultry
Exports
$5.222 million (2005)
Exports – commodities
Copra, papayas, fresh and canned citrus fruit, coffee; fish; pearls and pearl shells; clothing
Exports – partners
Australia 34%, Japan 27%, New Zealand 25%, US 8% (2004)
Imports
$81.04 million (2005)
Imports – commodities
Foodstuffs, textiles, fuels, timber, capital goods
Imports – partners
New Zealand 61%, Fiji 19%, US 9%, Australia 6%, Japan 2% (2004)
Debt – external
$141 million (1996 est.)
Economic aid – recipient
$13.1 million (1995); note – New Zealand furnishes the greater part
Currency
1 New Zealand dollar (NZ$) = 100 cents
Exchange rates
New Zealand dollars (NZ$) per US$1 – 1.4203 (2005), 1.9451 (January 2000), 1.8886 (1999), 1.8632 (1998), 1.5083 (1997), 1.4543 (1996), 1.5235 (1995)
Fiscal year
1 April–31 March

References

  1. ↑ 1.0 1.1 1.2 1.3 Fotheringham, Caleb (8 August 2025). "Cook Islands seeks balance as record tourism numbers put strain on local environment". RNZ. Retrieved 13 November 2025.
  2. ↑ "Reviving Cook Islands' Tourism Industry". Asian Development Bank. 2022. Retrieved 13 November 2025.
  3. ↑ 3.0 3.1 "UNdata | record view | Per capita GDP at current prices – US dollars". data.un.org. Retrieved 2024-05-27.
  4. ↑ "Banking Act 2011". PACLII. 13 December 2011. Retrieved 14 October 2021.
  5. ↑ Banking Act 2011, section 17.
  6. ↑ Nicky Hager (7 April 2013). "Money trail leads home to New Zealand". Stuff. Retrieved 14 October 2021.
  7. ↑ "Towards Global Tax Co-operation" (PDF). OECD. 2000. Archived (PDF) from the original on 2015-09-06. Retrieved 14 October 2021.
  8. ↑ "Cook Islands to co-operate with OECD tax haven work". IRD. 28 March 2002. Retrieved 14 October 2021.
  9. ↑ "Cook Islands: Cook Islands To Be Removed from OECD List Of "Tax Havens"". Mondaq. 10 June 2002. Retrieved 14 October 2021.
  10. ↑ "New Zealand Minister says Cook Islands links in alleged tax havens to be investigated". RNZ. 8 April 2013. Retrieved 14 October 2021.
  11. ↑ "Cooks defends trust regulations amid tax haven debate". RNZ. 9 April 2013. Retrieved 14 October 2021.
  12. ↑ Leslie Wayne (14 December 2013). "Cook Islands, a Paradise of Untouchable Assets". New York Times. Archived from the original on 2022-01-01. Retrieved 14 October 2021.
  13. ↑ "Cooks To Investigate Those Named In Panama Papers". Pacific Islands Report. 18 May 2016. Archived from the original on 23 October 2021. Retrieved 14 October 2021.
  14. ↑ "Files from four Pacific registries in Paradise Papers". RNZ. 6 November 2017. Retrieved 14 October 2021.
  15. ↑ "Paradise papers: The Cook Islands millionaire who never has to pay his debts". Australian Financial Review. 25 March 2018. Retrieved 14 October 2021.
  16. ↑ "Major leak of offshore data exposes Raro based Trust company". Cook Islands News. 5 October 2021. Retrieved 14 October 2021.
  17. ↑ Caleb Fotheringham (9 October 2021). "Cooks defend offshore services industry". Cook Islands News. Retrieved 14 October 2021.
  18. ↑ Tschoegl, Adrian (2003-01-01). Foreign Banks in the Pacific: Some History and Policy Issues (Report).
  19. ↑ "Our Managers". 2021-10-02. Archived from the original on 2021-10-02. Retrieved 2021-10-02.
  20. ↑ "Sea Bed Minerals Act 2019". Clerk of the Parliament. June 17, 2019. Retrieved April 29, 2025.
  21. ↑ Carstens, Halfdan (September 22, 2022). "The very first licences for nodule exploration". Geo Expro. Retrieved April 29, 2025.
  22. ↑ Inayatullah, Saim Dušan (February 22, 2025). "Cook Islands announces deep sea minerals deal with China". Deutsche Welle. Retrieved April 29, 2025.
  23. ↑ "Consumer Price Index | Cook Islands Statistics Office". Retrieved 2024-05-27.
  24. ↑ "Poverty Data: Cook Islands". www.adb.org. 30 May 2024. Retrieved 2024-05-27.

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