Niue records high trade deficit -$23.2M
The value of total imports for 2018 stands at $25. 8 million, an increase of 21.1% which is about 60% of the GDP.
Total exports value for 2018 has risen above the $2 Million mark for the first time, a further increase of 19.7% from the previous year, making up 9% of GDP.
Total imports $25,820,861 Total exports $2,583,148
This shows the level of reliance of Niue on imports from overseas is high and climbing.
The trade deficit or balance of trade remains to be high which is -$23.2M
According to Niue statistics report on International Merchandise Trade 2018, the five main contributors in HS broad groups to the increase of trade deficit is the high value and volume of imports in:
1. Mineral products.
2. prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes.
3. Products of the chemical or allied industries.
4. Machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles.
5. Live animals; animal products.
However, in terms of individual commodities the main 5 ones are:
- Automotive diesel; biodiesel, not for manufacture in a licensed manufacturing area.
- Jet fuel; spirit type, containing biodiesel, in bulk in ships’ bottoms or in containers of a capacity of 5 litres or more, not for manufacture in a licensed manufacturing area
- Dressings, adhesive; and other articles having an adhesive layer, (not incorporating woven fabrics), packed for retail sale for medical, surgical dental or veterinary purposes
4. Motor spirit; Research Octane No. less than 95 (regular grade) not blended with ethyl alcohol, can be used as a fuel for engines, in bulk in ships’ bottoms or in containers 5 litres or more, not for manufacture in a licensed manufacturing area.
5. Plastics; household and hygienic article
The year saw Noni juice as the main principal export commodity with a contribution of 70. 1% of the total principal exports, then Honey and honey products which accounts for 13. 8%, followed by Art and Craft commodities with 12. 7%.
The principal domestic exports of Niue commonly include Noni juice, taro, honey, coconut, stamps and coins, and vanilla.
Other exports such as aluminum and other metal waste & scrap, and arts & craft were not common but they pop up from time to time. According to historical records Fish exports ceased to feature as of 2008 on wards.
According to the report, the Government of Niue endeavors to decrease the balance of trade and improve the terms of trade in its future economic development initiatives, such as the exports of bottled water, increase the exporting of Honey and honey products, increase the export of noni juice to name a few and at the same time reducing the reliance on imported commodities.