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Economy of the Cook Islands

From Wikipedia, the free encyclopedia
(Redirected from Bank of the Cook Islands)

A solar panel array on Pukapuka, Cook Islands.
A solar panel array on Pukapuka

The economy of the Cook Islands is based mainly on tourism, with minor exports of tropical and citrus fruit. Manufacturing activities in the Cook Islands are limited to fruit-processing, clothing and handicrafts.

As in many other South Pacific nations, the economy is hindered by the country's isolation from foreign markets, lack of land[1] and other natural resources aside from fish, periodic devastation from natural disasters, inadequate infrastructure, and lack of capital for diversification.[1] Efforts to exploit tourism potential, encourage offshore banking, and expand the mining and fishing industries have been partially successful in stimulating investment and growth. Trade deficits are made up for by remittances from emigrants and by foreign aid, overwhelmingly from New Zealand.

Tourism

[edit]

Tourism makes up about 70% of GDP, with visitor numbers at record levels in 2025, after rebounding following the COVID-19 pandemic, when tourism collapsed due to closure of the border.[1][2] Per capita GDP had dropped from US$22,121 (2019) to $16,268 (2021)[3] due to the pandemic and the economy's heavy reliance on tourism.[1]

Banking and finance

[edit]

Banks in the Cook Islands are regulated under the Banking Act 2011.[4] Banks must be licensed and are supervised by the Cook Islands Financial Supervisory Commission.[5]

The Cook Islands developed an offshore financial services industry in the early 1980s.[6] Allegations that New Zealand-based companies were using it as a tax haven led to the Winebox Inquiry in New Zealand in the 1990s, and in 2000 it was listed as a tax haven by the OECD.[7] In 2002 it was delisted after it agreed to fiscal transparency and to exchange tax information.[8][9] Allegations of being a tax haven re-emerged in 2013 following the International Consortium of Investigative Journalists Offshore Leaks.[10][11] Trusts incorporated in the Cook Islands are used to provide anonymity and asset-protection.[12] The Cook Islands also featured in the Panama Papers,[13] Paradise Papers,[14][15] and Pandora Papers[16][17] financial leaks.

The Bank of the Cook Islands was created in 2001 by merging the Cook Islands Development Bank and the Cook Islands Savings Bank.[18] Economist Vaine Nooana-Arioka has been executive director of the Bank of the Cook Islands since 2008.[19]

Mining

[edit]

In 2019, the Cook Islands passed the Sea Bed Minerals (SBM) Act.[20]

In 2022, the Cook Islands Seabed Minerals Authority (SBMA) granted three exploration licenses for polymetallic nodules within their Exclusive Economic Zone to private companies Cobalt (CIC) Limited, Moana Minerals Limited and Cook Islands Investment Company (CIIC) Seabed Resources Limited, which is co-owned by the Cook Islands Government. The licenses expire in 2027.[21]

In 2025, the Cook Islands announced that it had signed a five-year agreement with China focused on exploration and research into seabed minerals.[22]

Telecommunications

[edit]

Telecom Cook Islands Ltd (TCI) is the sole provider of telecommunications in the Cook Islands. It is a private company owned by Spark New Zealand Ltd (60%) and the Cook Islands Government (40%). In operation since July 1991, TCI provides local, national and international telecommunications as well as internet access on all islands except Suwarrow. Communications to Suwarrow is via HF radio.

Statistics

[edit]
Treemap of product exports from the Cook Islands in 2019.Non-fillet frozen fish (animal products) — 39.04% — US$ 11,823,528Recreational boats (transportation) — 23.08% — US$ 6,990,567Fish fillets (animal products) — 16.42% — US$ 4,971,819Precious metal scraps (precious metals) — 6.51% — US$ 1,970,630Fruit juice (foodstuffs) — 3.17% — US$ 961,379Chemical analysis instruments (instruments) — 1.68% — US$ 509,481Crustaceans (animal products) — 1.42% — US$ 428,521Coin (precious metals) — 1.15% — US$ 348,597Excavation machinery (machines) — 0.75% — US$ 227,212Other precious metal products (precious metals) — 0.59% — US$ 178,006Surveying equipment (instruments) — 0.42% — US$ 128,371Collector's items (arts and antiques) — 0.30% — US$ 90,469Beauty products (chemical products) — 0.28% — US$ 85,468Vehicle parts (transportation) — 0.28% — US$ 84,403Ketones and quinones (chemical products) — 0.26% — US$ 79,436Scrap iron (metals) — 0.21% — US$ 63,311Other fermented beverages (foodstuffs) — 0.21% — US$ 63,093Textile footwear (footwear and headwear) — 0.20% — US$ 61,657Other fruits (vegetable products) — 0.20% — US$ 61,381Cars (transportation) — 0.19% — US$ 57,827Cellulose fibers paper (paper goods) — 0.18% — US$ 53,606Office machine parts (machines) — 0.17% — US$ 50,053Rubber tires (plastics and rubbers) — 0.15% — US$ 44,527Non-knit women's suits (textiles) — 0.15% — US$ 44,032Paintings (arts and antiques) — 0.13% — US$ 40,359Acyclic alcohols (chemical products) — 0.12% — US$ 35,794Gold (precious metals) — 0.12% — US$ 35,114Navigation equipment (machines) — 0.10% — US$ 31,772Coated metal soldering products (metals) — 0.10% — US$ 31,136Radio receivers (machines) — 0.09% — US$ 28,450Leather footwear (footwear and headwear) — 0.09% — US$ 27,933Iron gas containers (metals) — 0.09% — US$ 25,945Coconut oil (animal and vegetable bi-products) — 0.07% — US$ 20,903Telephones (machines) — 0.07% — US$ 20,471Gas turbines (machines) — 0.07% — US$ 20,000Industrial food preperation machinery (machines) — 0.07% — US$ 20,000Pearls (precious metals) — 0.07% — US$ 19,704Low-voltage protection equipment (machines) — 0.06% — US$ 19,105Models and stuffed animals (miscellaneous) — 0.06% — US$ 18,028Transmissions (machines) — 0.06% — US$ 17,280Electrical transformers (machines) — 0.06% — US$ 17,212Non-woven textiles (textiles) — 0.06% — US$ 16,880Knit women's suits (textiles) — 0.05% — US$ 16,045Bi-wheel vehicle parts (transportation) — 0.05% — US$ 14,689Orthopedic appliances (instruments) — 0.05% — US$ 14,114Machinery having individual functions (machines) — 0.04% — US$ 13,576Integrated circuits (machines) — 0.04% — US$ 13,561Iron structures (metals) — 0.04% — US$ 13,307House linens (textiles) — 0.04% — US$ 13,283Other measuring instruments (instruments) — 0.04% — US$ 12,739Compasses (instruments) — 0.04% — US$ 12,709Air conditioners (machines) — 0.04% — US$ 12,696Broadcasting equipment (machines) — 0.04% — US$ 11,788Engine parts (machines) — 0.04% — US$ 11,693Live fish (animal products) — 0.04% — US$ 11,604Harvesting machinery (machines) — 0.04% — US$ 11,156Knit women's undergarments (textiles) — 0.04% — US$ 10,700Aircraft parts (transportation) — 0.04% — US$ 10,629Electric heaters (machines) — 0.03% — US$ 10,314Printed circuit boards (machines) — 0.03% — US$ 9,727Other stone articles (stone and glass) — 0.03% — US$ 9,490Other plastic products (plastics and rubbers) — 0.03% — US$ 9,460Other furniture (miscellaneous) — 0.03% — US$ 9,226Stranded iron wire (metals) — 0.03% — US$ 9,091Medical instruments (instruments) — 0.03% — US$ 8,741Jewellery (precious metals) — 0.03% — US$ 8,462Electromagnets (machines) — 0.03% — US$ 8,405Lcds (instruments) — 0.03% — US$ 7,626Computers (machines) — 0.02% — US$ 6,914Other office machines (machines) — 0.02% — US$ 6,287Netting (textiles) — 0.02% — US$ 6,024Confectionery sugar (foodstuffs) — 0.02% — US$ 5,857Twine and rope (textiles) — 0.02% — US$ 5,828Other cloth articles (textiles) — 0.02% — US$ 5,582Wood kitchenware (wood products) — 0.02% — US$ 5,270Video displays (machines) — 0.02% — US$ 5,023Pulley systems (machines) — 0.02% — US$ 4,689Trunks and cases (animal hides) — 0.02% — US$ 4,660Knit sweaters (textiles) — 0.02% — US$ 4,583Scrap aluminium (metals) — 0.01% — US$ 4,346Other electrical machinery (machines) — 0.01% — US$ 4,119Liquid pumps (machines) — 0.01% — US$ 3,891Glues (chemical products) — 0.01% — US$ 3,882Sports equipment (miscellaneous) — 0.01% — US$ 3,783Metalworking machine parts (machines) — 0.01% — US$ 3,385Motorcycles (transportation) — 0.01% — US$ 3,358Non-knit men's coats (textiles) — 0.01% — US$ 3,342Other heating machinery (machines) — 0.01% — US$ 3,303Other iron products (metals) — 0.01% — US$ 3,212Industrial printers (machines) — 0.01% — US$ 3,205Values below 0.01% (machines) — 0.05% — US$ 15,530Values below 0.01% (metals) — 0.04% — US$ 10,873Values below 0.01% (textiles) — 0.03% — US$ 9,629Values below 0.01% (instruments) — 0.02% — US$ 5,693Values below 0.01% (plastics and rubbers) — 0.02% — US$ 5,427Values below 0.01% (paper goods) — 0.01% — US$ 3,175Values below 0.01% (wood products) — 0.01% — US$ 3,138Values below 0.01% (chemical products) — 0.01% — US$ 3,045Values below 0.01% (animal hides) — 0.01% — US$ 1,607Values below 0.01% (mineral products) — 0.00% — US$ 1,379Values below 0.01% (miscellaneous) — 0.00% — US$ 1,361Values below 0.01% (transportation) — 0.00% — US$ 1,318Values below 0.01% (precious metals) — 0.00% — US$ 1,133
Exports of the Cook Islands by product category (2019)
  Chemical products
  Transportation
  Machines
  Mineral products
  Plastics and rubbers
  Metals
  Foodstuffs
  Precious metals
  Textiles
  Instruments
  Animal products
  Vegetable products
  Paper goods
  Footwear and headwear
  Miscellaneous
  Stone and glass
  Wood products
  Animal and vegetable bi-products
  Animal hides
  Arts and antiques
  Weapons
GDP
Purchasing power parity – $183.2 million (2005 est.)
GDP – per capita
US$30,033 (2025)[3]
GDP – composition by sector
  • Agriculture: 15.1%
  • Industry: 9.6%
  • Services: 75.3% (2000)
Population below poverty line
28.4% of the population lives below the national poverty line. Statistics 2016 Asian Development Bank
Household income or consumption by percentage share
  • Lowest 10%: NA%
  • Highest 10%: NA%
Inflation rate (consumer prices)
4.2% (2024 est.)[23]
Labour force
6,820 (2001)
Labour force – by occupation
Agriculture 29%, industry 15%, services 56% (1995)
Unemployment rate
1.3% (2019)[24]
Budget
  • Revenues: $70.95 million
  • Expenditures: $69.05 million; including capital expenditures of $5.744 million (FY00/01 est.)
Industries
Fruit processing, tourism, fishing, clothing, handicrafts
Industrial production growth rate
1% (2002)
Electricity – production
28 GW·h (2003)
Electricity – production by source
  • Fossil fuel: 100%
  • Hydro: 0%
  • Nuclear: 0%
  • Other: 0% (2001)
Electricity – consumption
34.46 GW·h (2005 est)
Electricity – exports
0 kW·h (2003)
Electricity – imports
0 kW·h (2003)
Oil consumption
400 bbl/d (64 m3/d) (2003)
Agriculture – products
Copra, citrus, pineapples, tomatoes, beans, pawpaws, bananas, yams, taro, coffee, pigs, poultry
Exports
$5.222 million (2005)
Exports – commodities
Copra, papayas, fresh and canned citrus fruit, coffee; fish; pearls and pearl shells; clothing
Exports – partners
Australia 34%, Japan 27%, New Zealand 25%, US 8% (2004)
Imports
$81.04 million (2005)
Imports – commodities
Foodstuffs, textiles, fuels, timber, capital goods
Imports – partners
New Zealand 61%, Fiji 19%, US 9%, Australia 6%, Japan 2% (2004)
Debt – external
$141 million (1996 est.)
Economic aid – recipient
$13.1 million (1995); note – New Zealand furnishes the greater part
Currency
1 New Zealand dollar (NZ$) = 100 cents
Exchange rates
New Zealand dollars (NZ$) per US$1 – 1.4203 (2005), 1.9451 (January 2000), 1.8886 (1999), 1.8632 (1998), 1.5083 (1997), 1.4543 (1996), 1.5235 (1995)
Fiscal year
1 April–31 March

References

[edit]
  1. 1 2 3 4 Fotheringham, Caleb (8 August 2025). "Cook Islands seeks balance as record tourism numbers put strain on local environment". RNZ. Retrieved 13 November 2025.
  2. ↑ "Reviving Cook Islands' Tourism Industry". Asian Development Bank. 2022. Retrieved 13 November 2025.
  3. 1 2 "UNdata | record view | Per capita GDP at current prices – US dollars". data.un.org. Retrieved 2024-05-27.
  4. ↑ "Banking Act 2011". PACLII. 13 December 2011. Retrieved 14 October 2021.
  5. ↑ Banking Act 2011, section 17.
  6. ↑ Nicky Hager (7 April 2013). "Money trail leads home to New Zealand". Stuff. Retrieved 14 October 2021.
  7. ↑ "Towards Global Tax Co-operation" (PDF). OECD. 2000. Archived (PDF) from the original on 2015-09-06. Retrieved 14 October 2021.
  8. ↑ "Cook Islands to co-operate with OECD tax haven work". IRD. 28 March 2002. Retrieved 14 October 2021.
  9. ↑ "Cook Islands: Cook Islands To Be Removed from OECD List Of "Tax Havens"". Mondaq. 10 June 2002. Retrieved 14 October 2021.
  10. ↑ "New Zealand Minister says Cook Islands links in alleged tax havens to be investigated". RNZ. 8 April 2013. Retrieved 14 October 2021.
  11. ↑ "Cooks defends trust regulations amid tax haven debate". RNZ. 9 April 2013. Retrieved 14 October 2021.
  12. ↑ Leslie Wayne (14 December 2013). "Cook Islands, a Paradise of Untouchable Assets". New York Times. Archived from the original on 2022-01-01. Retrieved 14 October 2021.
  13. ↑ "Cooks To Investigate Those Named In Panama Papers". Pacific Islands Report. 18 May 2016. Archived from the original on 23 October 2021. Retrieved 14 October 2021.
  14. ↑ "Files from four Pacific registries in Paradise Papers". RNZ. 6 November 2017. Retrieved 14 October 2021.
  15. ↑ "Paradise papers: The Cook Islands millionaire who never has to pay his debts". Australian Financial Review. 25 March 2018. Retrieved 14 October 2021.
  16. ↑ "Major leak of offshore data exposes Raro based Trust company". Cook Islands News. 5 October 2021. Retrieved 14 October 2021.
  17. ↑ Caleb Fotheringham (9 October 2021). "Cooks defend offshore services industry". Cook Islands News. Retrieved 14 October 2021.
  18. ↑ Tschoegl, Adrian (2003-01-01). Foreign Banks in the Pacific: Some History and Policy Issues (Report).
  19. ↑ "Our Managers". 2021-10-02. Archived from the original on 2021-10-02. Retrieved 2021-10-02.
  20. ↑ "Sea Bed Minerals Act 2019". Clerk of the Parliament. June 17, 2019. Retrieved April 29, 2025.
  21. ↑ Carstens, Halfdan (September 22, 2022). "The very first licences for nodule exploration". Geo Expro. Retrieved April 29, 2025.
  22. ↑ Inayatullah, Saim Dušan (February 22, 2025). "Cook Islands announces deep sea minerals deal with China". Deutsche Welle. Retrieved April 29, 2025.
  23. ↑ "Consumer Price Index | Cook Islands Statistics Office". Retrieved 2024-05-27.
  24. ↑ "Poverty Data: Cook Islands". www.adb.org. 30 May 2024. Retrieved 2024-05-27.
[edit]
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