Economy of Oceania

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Economy of Oceania
Statistics
Populationestimated 38 million (2014)[1]
GDPPPP: US$1.67 trillion (2014)
GDP per capita
PPP: $22,647
During 2003 unless otherwise stated. Most numbers are from the UNDP from 2002, some numbers exclude certain countries for lack of information.

All values, unless otherwise stated, are in US dollars.
The skyline of the Sydney central business district in Australia. Sydney is the most populous city in Oceania and is one of Oceania's only two Alpha world cities.
The skyline of the Auckland Central Business District in New Zealand. Auckland is the fifth populous city in Oceania and most populous city in New Zealand.
The downtown area of Port Moresby, the capital of Papua New Guinea. Port Moresby is the most populous Oceanian city outside of Australia and New Zealand.

The economy of Oceania comprises more than 14 separate countries and their associated economies.

On a total scale Oceania has approximately 34,700,201[1] inhabitants who are spread among 30,000 islands[citation needed] in the South Pacific bordered between Asia and the Americas. This region has a diverse mix of economies from the highly developed and globally competitive financial market of Australia to the much less developed economies that belong to many of its island neighbours. New Zealand is the only other developed country in the region, although the economy of Australia is by far the largest and most dominant economy in the region and one of the largest in the world.[citation needed]

Regional variation[edit]

to be completed

Oceania

Trade blocs[edit]

The smallest Pacific nations rely on trade with Australia, New Zealand and the United States for exporting goods and for accessing other products.

Australia and New Zealand's trading arrangements are known as Closer Economic Relations. Australia and New Zealand, along with other countries, are members of Asia-Pacific Economic Cooperation (APEC) and the East Asia Summit (EAS), which may become trade blocs in the future particularly EAS.

Currency[edit]

The below table summarizes the official currencies of Oceania. Several territories are dollarized or use a currency with a fixed exchange rate.

Country Currency Central bank Notes
 Australia Australian Dollar Reserve Bank of Australia
 Cook Islands New Zealand Dollar Reserve Bank of New Zealand Dollarized
 Fiji Fiji Dollar Reserve Bank of Fiji
 French Polynesia Pacific Franc Institut d'émission d'Outre-Mer Currency union, pegged to Euro
 Kiribati Australian Dollar Reserve Bank of Australia Dollarized
 Marshall Islands US Dollar Federal Reserve Dollarized
 Federated States of Micronesia US Dollar Federal Reserve Dollarized
 Nauru Australian Dollar Reserve Bank of Australia Dollarized
 New Caledonia Pacific Franc Institut d'émission d'Outre-Mer Currency union, pegged to Euro
 New Zealand New Zealand Dollar Reserve Bank of New Zealand
 Niue New Zealand Dollar Reserve Bank of New Zealand Dollarized
 Palau US Dollar Federal Reserve Dollarized
 Papua New Guinea Kina Bank of Papua New Guinea
 Samoa Tala Central Bank of Samoa
 Solomon Islands Solomon Islands dollar Central Bank of Solomon Islands
 Tokelau New Zealand Dollar Reserve Bank of New Zealand Dollarized
 Tonga Pa'anga National Reserve Bank of Tonga Pegged to currency basket
 Tuvalu Australian Dollar Reserve Bank of Australia Dollarized
 Vanuatu Vatu Reserve Bank of Vanuatu
 Wallis and Futuna Pacific Franc Institut d'émission d'Outre-Mer Currency union, pegged to Euro

Economic sectors[edit]

Service industry[edit]

The overwhelming majority of people living in the Pacific islands work in the service industry which includes tourism, education and financial services. Oceania's largest export markets include Japan, China, the United States and South Korea. The majority of people living in Australia and to a lesser extent, New Zealand work in mining, electrical and manufacturing sectors also.

Manufacturing[edit]

The manufacturing of clothing is a major industry in some parts of the Pacific, especially Fiji, although this is decreasing.

Australia boasts the largest amount of manufacturing in the region. Producing cars, electrical equipment, machinery and clothes.

Tourism[edit]

Tourism has become a large source of income for many in the Pacific; tourists come from Australia, New Zealand, Japan, the United Kingdom and the United States. Fiji currently draws almost half a million tourists each year; more than a quarter from Australia. This contributes $1 billion or more since 1995 to Fiji's economy but the Government of Fiji islands underestimate these figures due to invisible economy inside tourism industry.

Agriculture and fishing[edit]

Agriculture and natural resources constitutes only 5% to 10% of Oceania's total jobs, but contributes substantially to export performance. The most populous two nations, Australia and New Zealand, are also the most developed and have majority service industries. This dilutes the data from the less developed Pacific Island nations who have major agricultural economies. Most of the Pacific countries (excluding Australia and New Zealand) the primary industry is agriculture. Many nations are still quintessentially agricultural; for example, 80% of the population of Vanuatu and 70% of the population of Fiji works in agriculture. The main produce from the pacific is copra or coconut, but timber, beef, palm oil, cocoa, sugar and ginger are also commonly grown across the tropics of the Pacific. Fishing provides a major industry for many of the smaller nations in the Pacific, although many fishing areas are exploited by other larger countries, namely Japan. Natural Resources, such as lead, zinc, nickel and gold, are mined in Australia and the Solomon Islands. Oceania's largest export markets include Japan, China, the United States, India, South Korea and the European Union.

International aid and charity[edit]

Oceanian donor nations[edit]

Oceania's most populous nations, Australia and New Zealand, are both highly developed nations and are large international aid donors. These two wealthy nations share the region with less developed nations which still rely on foreign aid for development. In the 2007/08 financial year Australia provided $3.155 billion worth of official development assistance, of which $2.731 billion will be managed by AusAID. Every week, each Australian puts in around $2.40 to pay for Australia's aid program, amounting to around 1% of the Australian Federal Government expenditure compared to the 42% spent on social security and welfare.

Oceanian recipient states[edit]

In the Solomon Islands 50% of government spending is paid for by international donors; namely Australia, New Zealand, the European Union, Japan and the Republic of China (Taiwan).

Global trade relations[edit]

This region consists of many trading relations because of the small amount of land and limited resources they have. Many have trading economies and are transitioning to a developed economy and infrastructure.

See also[edit]

References[edit]

  1. ^ a b "Internet Usage and Population in Oceania". Retrieved 15 January 2010.