The economy of Kiribati, with per capita Gross National Product less than $ 1000 makes it one of the poorest countries of the world. The economy of Kiribati possesses restricted growth prospects, owing to factors like remote location, underdeveloped infrastructure, poor soil conditions, scarcity of skilled laborers and dearth of natural resources.
Though agriculture forms the main basis of economic development of the country, the total volume of agricultural production is quite low. As per the records, the agricultural sector of Kiribati contributed only 14 percent to the national GDP in the year 1996. The only significant cash crop that is grown in the country is Copra.
Other than crop growing, Tuna fishing is done commercially by a small fleet of the national fishing company. But, the importance of the agricultural sector lies in the fact that, the sector employs a bulk of the country’s working population, thereby accounting for 71 percent of national employment in 1990.
The Kiribati industrial sector contributed a mere 7% of the country’s GDP in 1996, out of which contribution from the manufacturing sectors is only 1%.
At present, fishery is considered to be the largest industrial sector in the country, followed by tourism which is yet to flourish in all its colors.
The export rate of Kiribati is extremely low, owing to low domestic productivities in the agricultural and industrial fields. The island-country is largely dependent on imports for more or less all essential food and manufacturing items, resulting in a long-run trade deficit.
Last Updated on : 25th June 2013