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Kiribati : Economy
A remote nation of 33 scattered coral atolls, Kiribati has few national resources. Commercially viable phosphate deposits were exhausted at the time of freedom from the UK in 1979. Copra and fish now represent the bulk of production and exports. The economy has fluctuated widely in recent years. Economic development is constrained by a shortage of skilled workers, weak infrastructure, and remoteness from international markets. Tourism provides more than one-fifth of GDP. The financial area is at an early stage of development as is the development of private area initiatives. Foreign financial aid, largely from the UK and Japan, is a critical supplement to GDP, equal to 25%-50% of GDP in recent years. Remittances from workers abroad account for more than $5 million each year. Performance in 2000 fell short of the 2.5% growth in 1999, which benefited from increased copra production and exceptionally large revenues from fishing licenses.
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