ECONOMY
Having once boasted the second-highest per capita GDP in the world thanks to its fabled phosphate mines, Nauru is today destitute. With the seeming depletion of readily accessible phosphate reserves in 2000, mining on a large-scale commercial basis ended. The decline of mining saw a dramatic economic contraction, compounded by past government corruption and disastrous mismanagement of trust funds that had been expected to provide post-mining revenue streams for Nauru's citizens. Since 2000, Nauru has relied largely on payments for fishing rights within its exclusive economic zone, earnings from hosting two Australian refugee processing camps, and massive injections of grants and development funding, principally from Australia, New Zealand, Japan, China and more recently Taiwan. The government-owned mining company, the Republic of Nauru Phosphate Company or RONPhos has resumed mining and exporting phosphate and has reportedly made a small profit..
Although Nauru had a nominal per capita GDP in excess of $2,700, its economy is
in deep crisis, and the resumption of mining promises only a limited respite as
the country seeks to find a sustainable economic future. The private sector is
very small and employs less than 300. Nauru imports well over 90% of its
foodstuffs and other basic goods, but sea and air transport has become
problematic. In December 2005, the national airline's remaining airplane was
repossessed for non-payment, leaving Nauru dependent on chartered flights. In
September 2006, with financing help from Taiwan, a replacement aircraft
re-established scheduled commercial flights to Nauru and around the region under
the new name of Our Airline. The provision of electricity and water, both
dependent on expensive imported fuel, is limited and sporadic. With the help of
the Pacific Islands Forum and numerous development partner nations, Nauru has
embarked on a major, multi-year strategic national development program to
achieve a sustainable economic framework for the country.
Economy (all figures in U.S. $)
GDP (2007 est.): $22.5 million.
Per capita GDP (2007 est.): $2,564.
Avg. inflation rate (2005 est.): 3.0%.
Industry: Types--phosphate mining.
Trade: Exports (2005 est.)--$4.4 million; phosphates. Major export markets—Japan, Republic of Korea, India. Imports (2005 est.)--$29.9 million; food, fuel, manufactures. Major import sources--Australia, Republic of Korea, United States.
Currency: Australian dollar (A$).
