Economy
[edit]
Main article: Economy of Niue
Alofi is the capital of Niue.
Niue's gross domestic product (GDP) was NZ$17 million in 2003, or US$10 million at purchasing power parity. Its GDP had increased to US$24.9 million by 2016. Niue uses the New Zealand dollar.
The Niue Integrated Strategic Plan (NISP) is the national development plan, setting national priorities for development. Cyclone Heta set the island back about two years from its planned timeline to implement the NISP, since national efforts concentrated on recovery efforts. In 2008, Niue had yet to fully recover. After Heta, the government made a major commitment to rehabilitate and develop the private sector. In 2004, the New Zealand government allocated $1 million for the private sector, and spent it on helping businesses devastated by the cyclone, and on construction of the Fonuakula Industrial Park.[citation needed] This industrial park is now completed and some businesses are already operating from there. The Fonuakula Industrial Park is managed by the Niue Chamber of Commerce, a not-for-profit organisation providing advisory services to businesses.[citation needed]
Joint ventures[edit]
The government and the Reef Group from New Zealand started two joint ventures in 2003 and 2004 to develop fisheries and a 120-hectare (300 acre) noni juice operation. Noni fruit comes from Morinda citrifolia, a small tree with edible fruit. Niue Fish Processors Ltd (NFP) is a joint venture company processing fresh fish, mainly tuna (yellowfin, big eye and albacore), for export to overseas markets. NFP operates out of a fish plant in Amanau Alofi South, completed and opened in October 2004.
Mining[edit]
In August 2005, an Australian mining company, Yamarna Goldfields, suggested that Niue might have the world's largest deposit of uranium. By early September these hopes were seen as overly optimistic, and in late October the company cancelled its plans, announcing that exploratory drilling had identified nothing of commercial value. The Australian Securities and Investments Commission filed charges in January 2007 against two directors of the company, now called Mining Projects Group Ltd, alleging that their conduct had been deceptive and that they engaged in insider trading. This case was settled out of court in July 2008, both sides withdrawing their claims.
Debt[edit]
On 27 October 2016, Niue officially declared that all its national debt was paid off. The government plans to spend money saved from servicing loans on increasing pensions and offering incentives to lure expatriates back home. However, Niue is not entirely independent. New Zealand pays $14 million in aid each year and Niue still depends on New Zealand economically. Premier Toke Talagi said Niue managed to pay off US$4 million of debt and had "no interest" in borrowing again, particularly from countries such as China that offered "huge sums that other Pacific islands find too tempting to resist".
Revenue[edit]
Remittances from expatriates were a major source of foreign exchange in the 1970s and early 1980s. Continuous migration to New Zealand has shifted most members of nuclear and extended families there, removing the need to send remittances back home. In the late 1990s, PFTAC conducted studies on the balance of payments, which confirmed that Niueans are receiving few remittances but are sending more money overseas.
Foreign aid[edit]
Foreign aid is a significant source of income, accounting for approximately a third of Niue's annual government revenue. Most aid comes from New Zealand, which has a legal obligation to provide economic and administrative assistance. Other sources of revenue for the government are taxation and trading activities, such as philatelic services and the lease of phone lines.
Offshore banking[edit]
The government briefly considered offshore banking. Under pressure from the U.S. Treasury, Niue agreed to end its support for schemes designed to minimise tax in countries like New Zealand. Niue provides automated Companies Registration, administered by the New Zealand Ministry of Economic Development. The Niue Legislative Assembly passed the Niue Consumption Tax Act in the first week of February 2009, and the 12.5% tax on goods and services was expected to take effect on 1 April 2009. Income tax has been lowered, and import tax may be reset to zero except for "sin" items like tobacco, alcohol and soft drinks. Tax on secondary income has been lowered from 35% to 10%, with the stated goal of fostering increased labour productivity.
Internet[edit]
In 1997, the Internet Assigned Numbers Authority (IANA), under contract with the U.S. Department of Commerce, assigned the Internet Users Society-Niue (IUS-N), a private non-profit, as manager of the .nu top-level domain on the Internet. The stated purpose of IUS-N was to use revenue from .nu domain registrations to support Internet services for Niue. According to a letter to ICANN in 2007, IUS-N's auditors reported an investment of US$3 million in Niue's Internet services between 1999 and 2005, funded by domain registration revenue. In 1999, an agreement was reached between IUS-N and the Government of Niue, recognizing IUS-N's management of the .nu ccTLD under IANA's authority. This agreement included commitments to provide free Internet services to government departments and citizens.
A subsequent government disputed this agreement and sought compensation from IUS-N. A Commission of Inquiry in 2005 found no merit in these claims, which were dismissed by the government in 2007. Starting in 2003, IUS-N began expanding Wi-Fi coverage throughout the capital village of Alofi and in several nearby villages and schools, and has been expanding Wi-Fi coverage into the outer villages since then, making Niue the first Wi-Fi nation. Additionally, IUS-N provides secure DSL connections for government departments at no cost.
On December 16, 2020, the Government of Niue initiated proceedings to reassign control of its national webspace, .nu, from the Internet Corporation for Assigned Names and Numbers (ICANN) to itself. This action reflects ongoing efforts by Niue to assert control over its digital assets amid concerns about national sovereignty and economic benefits associated with the .nu domain.
On March 23, 2026, the Niuean government approved a 12-month license for Starlink to operate as an internet service provider on the island. Previously, accessing a Starlink kit in Niue was prohibited and carried penalties, including a $200 fine or up to three months in prison.
Agriculture[edit]
See also: Coconut production in Niue
Taro is a staple food exported to New Zealand.
Agriculture is very important to the lifestyle of Niueans and the economy, and around 204 square kilometres (79 sq mi) of the land area are available for agriculture. Subsistence agriculture is very much part of Niue's culture, where nearly all the households have plantations of taro. Taro is a staple food, and the pink taro now dominant in the taro markets in New Zealand and Australia is a product of Niue. This is one of the naturally occurring taro varieties on Niue, and has a strong resistance to pests. The Niue taro is known in Samoa as "talo Niue" and in international markets as pink taro. Niue exports taro to New Zealand.
Tapioca or cassava, yams and kumara also grow very well, as do different varieties of bananas. Coconut meat, passionfruit and limes dominated exports in the 1970s, but in 2008 vanilla, noni and taro were the main export crops.
Most families grow their own food crops for subsistence and sell their surplus at the Niue Makete in Alofi, or export to New Zealand. Coconut crab, or uga, is also part of the food chain; it lives in the forest and coastal areas.
In 2003, the government made a commitment to develop and expand vanilla production with the support of NZAID. Vanilla has grown wild on Niue for a long time. The industry was devastated by Cyclone Heta in early 2004, but has since recovered.
The last agricultural census was in 1989.
Tourism[edit]
Avatele Beach
Along with fisheries and agriculture, tourism is one of the three priority economic sectors for economic development. In 2006, estimated visitor expenditure reached US$1.6 million (equivalent to about $3M in 2025). The only airport is Niue International Airport, and Air New Zealand is the sole airline, flying twice a week from Auckland. In the early 1990s Niue International Airport was served by a local airline, Niue Airlines, but it closed in 1992.
The sailing season begins in May. Alofi Bay has many mooring buoys and yacht crews can lodge at Niue Backpackers. The anchorage in Niue is one of the least protected in the South Pacific. Other challenges of the anchorage are a primarily coral bottom and many deep spots.
Niue became the world's first dark-sky country in March 2020. The entire island maintains standards of light development and keeps light pollution limited. Guided Astro-tours will be offered for tourists, led by trained Niuean community members.
Matavai Resort controversy[edit]
New Zealand businessman Earl Hagaman, founder of Scenic Hotel Group, was awarded a contract in 2014 to manage the Matavai Resort in Niue after he made a $101,000 political donation to the New Zealand National Party, which at that time led a minority government in New Zealand. The resort is subsidized by New Zealand, which wants to bolster tourism there. In 2015, New Zealand announced $7.5m in additional funding for expansion of the resort.[citation needed]
The selection of the Matavai contractor was made by the Niue Tourism Property Trust, whose trustees are appointed by New Zealand Foreign Affairs minister Murray McCully. Prime Minister John Key said he did not handle campaign donations, and that Niue premier Toke Talagi has long pursued tourism as a growth strategy. McCully denied any link between the donation, the foreign aid and the contractor selection.
Information technology[edit]
Students using their OLPC laptops in the schoolyard.
The Census of Households and Population in 1986 was the first to be processed using a personal computer with the assistance of David Marshall, FAO adviser on agricultural statistics, advising UNFPA demographer Lawrence Lewis and Niue government statistician Bill Vakaafi Motufoou to switch from using manual tabulation cards. In 1987, Statistics Niue got its new personal computer NEC PC AT use for processing the 1986 census data; personnel were sent on training in Japan and New Zealand to use the new computer. The first Computer Policy was developed and adopted in 1988.
In 2003, Niue became the first country in the world to provide state-funded wireless internet to all inhabitants.
In August 2008, it has been reported that all school students have what is known as the OLPC XO-1, a specialised laptop by the One Laptop per Child project designed for children in the developing world.
In July 2011, Telecom Niue launched pre-paid mobile services (Voice/EDGE – 2.5G) as Rokcell Mobile based on the commercial GSM product of vendor Lemko. Three BTS sites will cover the nation. International roaming is not currently available.[citation needed]
In January 2015, Telecom Niue completed the laying of the fibre optic cable around Niue connecting all the 14 villages, making land line phones and ADSL internet connection available to households.
Niue was connected to the Manatua Fibre Cable in 2021.
