New Caledonia - Economy

Economy

New Caledonia has one of the largest economies in the South Pacific, with a GDP of US$8.85 billion in 2010. The nominal GDP per capita was US$35,436 (at market exchange rates) in 2010. It is thus higher than New Zealand's, though there is significant inequality in income distribution, and long-standing structural imbalances between the economically dominant South Province and the less developed North Province and Loyalty Islands. The currency in use in New Caledonia is the CFP franc, pegged to the euro at a rate of 100 CFP to 0.84 euros. It is issued by the Institut d'Emission d'Outre-Mer.

Real GDP grew by 3.7% in 2010, boosted by rising worldwide nickel prices and an increase of domestic demand due to rising employment. In 2010, exports from New Caledonia amounted to 1.47 billion US dollars, 95.1% of which were mineral products and alloys (essentially nickel ore and ferronickel). Imports amounted to 3.25 billion US dollars. 22.3% of imports came from Metropolitan France, 13.7% from other European countries, 12.9% from Singapore (essentially fuel), 9.7% from Australia, 3.8% from New Zealand, 3.4% from the United States, 2.3% from Japan, and 31.9% from other countries. The trade deficit thus stood at 1.79 billion US dollars in 2010.

Financial support from France is substantial, representing more than 15% of the GDP, and contributes to the health of the economy. Tourism is underdeveloped, with 100,000 visitors a year, compared to 400,000 in the Cook Islands and 200,000 in Vanuatu. Much of the land is unsuitable for agriculture, and food accounts for about 20% of imports. According to FAOSTAT, New Caledonia is one of world's largest producers of: yams (33rd); taro (44th); plantains (50th); coconuts (52nd). The exclusive economic zone of New Caledonia covers 1.4 million square kilometres. The construction sector accounts for roughly 12% of GDP, employing 9.9% of the salaried population in 2010. Manufacturing is largely confined to small-scale activities such as the transformation of foodstuffs, textiles and plastics.