The economy of Tuvalu is still expected to grow by 1.3% in 2013, as projected in the Asian Development Outlook (2013) in April, and by 1.5% in 2014 on the back of progress in upgrading the Tuvalu airport and continued growth in the retail sector. However, newly released data from a seafarer recruitment agency showed a substantial decline in remittances, which are a significant source of income for families in Tuvalu. These plunged to $0.3 million in 2012 from $1.2 million in 2001, a sizeable decline in an economy whose estimated gross domestic product is $37 million. The number of ships contracting with the agency also declined.
|Selected Economic Indicators (%) - Tuvalu||2013||2014|
|ADO 2013||Update||ADO 2013||Update|
|Current Account Balance (share of GDP)||-3.3||-3.3||--||--|
Source: Asian Development Outlook (ADO) 2013 Update; ADB estimates.
In Tuvalu, inflation is still projected to be 2.0% in 2013 and 2014. This reflects a 7.4% increase in transport costs and 2.9% rise in utilities prices in the first quarter of 2013, but with food prices remaining stable during the period.
Source: ADB. 2013. Asian Development Outlook 2013 Update. Manila.