Tuvalu Economy
Is Tuvalu a wealthy country?
Despite its small size and remote location, Tuvalu has a developing economy that relies on a mix of traditional subsistence farming, fishing, and international aid.
Agriculture and fishing are the mainstay of the Tuvaluan economy. The majority of the population engage in subsistence farming, growing crops such as pulaka, taro, and bananas, as well as fishing for tuna, trevally, and other marine species. The government has also invested in developing the country's aquaculture industry, which involves farming fish and shellfish in ponds and tanks.
In addition to traditional agriculture and fishing, Tuvalu also relies heavily on international aid. The country is one of the smallest and poorest nations in the world, with limited natural resources and infrastructure. As such, it has received significant aid from international organizations such as the World Bank, the Asian Development Bank, and the United Nations Development Programme. Much of this aid has been directed towards improving access to clean water, sanitation, and healthcare, as well as developing the country's infrastructure, including roads, airports, and telecommunications networks.
Another important sector of the Tuvaluan economy is the tourism industry. While the country is not a major tourist destination, it does receive a small number of visitors each year who come to experience the unique culture and natural beauty of the atolls. The government has invested in developing tourism infrastructure, including the construction of hotels and guesthouses, as well as promoting Tuvalu as an eco-friendly and sustainable travel destination.
Despite its modest economic growth, Tuvalu still faces significant challenges. The country is highly vulnerable to the impacts of climate change, including rising sea levels, increased frequency of storms and floods, and saltwater intrusion into the limited freshwater supply. These challenges threaten the country's food security, infrastructure, and economy, and require significant investments in adaptation and mitigation measures.
Tuvalu Economy Data
What is the GDP of Tuvalu?
| Currency Name and Code | Austrlian Dollar (AUD) |
| GDP - Gross Domestic Product (PPP) | $50,000,000 (USD) |
| GDP - official exchange rate | $34,000,000 (USD) |
| GDP - real growth rate | 3.5% |
| GDP Per Capita | $3,400.00 (USD) |
| GDP by Sector- agriculture | 24.5% |
| GDP by Sector- Industry | 5.6% |
| GDP by Sector- services | 70% |
| Inflation Rate | 3.8% |
| Labor Force | 3,615 |
| Labor Force by Occupation - note | people make a living mainly through exploitation of the sea, reefs, and atolls and through overseas remittances (mostly from workers in the phosphate industry and sailors) |
| Fiscal Year | calendar year |
| Annual Budget | $21,540,000 (USD) |
| Budget Surplus or Deficit - percent of GDP | -4% |
| Taxes and other revenues - percent of GDP | 56.7% |
| Major Industries | fishing, tourism, copra |
| Agriculture Products | coconuts; fish |
| Exchange Rate per US Dollar | Australian dollar (AUD); note - there is also a Tuvaluan dollar |