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 and is almost entirely dependent upon imported food and fuel. Subsistence farming and fishing are the primary economic activities. Fewer than 1,000 tourists, on average, visit Tuvalu annually. Job opportunities are scarce and public sector workers make up most of those employed. About 15% of the adult male population work as seamen on merchant ships abroad, and remittances are a vital source of income contributing around $2 million in 2007. Substantial income is received annually from the Tuvalu Trust Fund (TTF) 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 grew from an initial $17 million to an estimated value of $77 million in 2006. The TTF contributed nearly $9 million towards the government budget in 2006 and is an important cushion for meeting shortfalls in the government's budget. The US Government is also a major revenue source for Tuvalu because of payments from a 1988 treaty on fisheries. In an effort to ensure financial stability and sustainability, the government is pursuing public sector reforms, including privatization of some government functions and personnel cuts. Tuvalu also derives royalties from the lease of its ".tv" Internet domain name with revenue of more than $2 million in 2006. A minor source of government revenue comes from the sale of stamps and coins. With merchandise exports only a fraction of merchandise imports, continued reliance must be placed on fishing and telecommunications license fees, remittances from overseas workers, official transfers, and income from overseas investments. Growing income disparities and the vulnerability of the country to climatic change are among leading concerns for the nation.

GDP (purchasing power parity):
$14.94 million (2002 est.)
country comparison to the world: 227
[see also: GDP (purchasing power parity) country ranks ]

GDP (official exchange rate):
$14.94 million (2002)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
3% (2006 est.)
country comparison to the world: 123
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$1,600 (2002 est.)
country comparison to the world: 200
[see also: GDP - per capita country ranks ]

GDP - composition by sector:
agriculture: 16.6%
[see also: GDP - composition by sector - agriculture country ranks ]
industry: 27.2%
[see also: GDP - composition by sector - industry country ranks ]
services: 56.2% (2002)
[see also: GDP - composition by sector - services country ranks ]

Labor force:
3,615 (2004 est.)
country comparison to the world: 221
[see also: Labor force country ranks ]

Labor force - by occupation:
note: people make a living mainly through exploitation of the sea, reefs, and atolls and from wages sent home by those abroad (mostly workers in the phosphate industry and sailors)

Unemployment rate:
NA%
[see also: Unemployment rate country ranks ]

Population below poverty line:
NA%
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: NA%
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Budget:
revenues: $21.54 million
[see also: Budget - revenues country ranks ]
expenditures: $23.05 million (2006)
[see also: Budget - expenditures country ranks ]

Inflation rate (consumer prices):
3.8% (2006 est.)
country comparison to the world: 111
[see also: Inflation rate (consumer prices) country ranks ]

Agriculture - products:
coconuts; fish

Industries:
fishing, tourism, copra

Industrial production growth rate:
NA%
[see also: Industrial production growth rate country ranks ]

Current account balance:
-$11.68 million (2003)
country comparison to the world: 62
[see also: Current account balance country ranks ]

Exports:
$1 million (2004 est.)
country comparison to the world: 219
[see also: Exports country ranks ]

Exports - commodities:
copra, fish

Imports:
$12.91 million (2005)
country comparison to the world: 221
[see also: Imports country ranks ]

Imports - commodities:
food, animals, mineral fuels, machinery, manufactured goods

Debt - external:
$NA
[see also: Debt - external country ranks ]

Exchange rates:
Tuvaluan dollars or Australian dollars (AUD) per US dollar - 1.1151 (2009), 1.2059 (2008), 1.2137 (2007), 1.3285 (2006)