Tokelau - Economy

Economy

According to the US Central Intelligence Agency's list of countries by GDP (PPP) Tokelau has the smallest economy of any country in the world. Tokelau has an annual purchasing power of about US$1,000 (€674) per capita. The government is almost entirely dependent on subsidies from New Zealand. It has annual revenues of less than US$500,000 (€336,995) against expenditures of some US$2.8 million (€1.9 million). The deficit is made up by aid from New Zealand.

Tokelau annually exports around US$100,000 (€67,000) of stamps, copra and woven and carved handicrafts and imports over US$300,000 (€202,000) of foodstuffs, building materials, and fuel to, and from, New Zealand. New Zealand also pays directly for the cost of medical and education services. Local industries include small-scale enterprises for copra production, wood work, plaited craft goods, stamps, coins, and fishing. Agriculture and livestock produces coconuts, copra, breadfruit, papayas, bananas, figs, pigs, poultry and few goats. Many Tokelauans live in New Zealand and support their families in Tokelau through remittances.

Tokelau has plans to only use renewable energy. If this is achieved it will be the only nation to have achieved this goal. It is expected that by mid 2012 Tokelau's electricity supply will be 93% generated by photovoltaics, with the remainder generated from coconut oil. On 7 November 2012, the islands have met these goals and become the first territory in the world to meet all of their electricity needs from solar power, according to the Foreign Affairs Minister of New Zealand, Murray McCully.