Niue and ADB

ADB's Work in Niue

In March 2019, Niue became the 68th and most recent member of ADB.

Niue faces significant challenges in achieving sustained social and economic development. It is one of the smallest countries in the world, with an estimated population of just 1,520 in 2018. In proportionate terms, Niue has experienced the largest population decline of any country in recent history. The resident population of the island was reported as 5,194 in 1966.

Tourism development has been the main driver of economic growth in Niue. Improved flight connectivity, investment in accommodation facilities, and a coordinated marketing campaign have seen visitor arrivals rise from around 2,000 in 2005 to about 11,500 in 2017. At around eight visitors for every resident, this translates into one of the highest tourist-to-population ratios globally.

Fiscal discipline, along with large and predictable inflows of overseas development assistance, have helped to ensure macroeconomic stability in Niue. The country’s development has particularly benefited from its close relationship with New Zealand, which provides significant technical and financial assistance.

Nonsovereign Operations

As a catalyst for private investments, ADB provides financial assistance to nonsovereign projects and financial intermediaries. Total commitments from ADB’s own funds (in equity and direct loans) in 2019 amounted to $3.00 billion for 38 transactions in economic and social infrastructure, the finance sector, and agribusiness. ADB also actively mobilizes cofinancing from commercial and concessional sources. In 2019, ADB mobilized $3.28 billion of long-term cofinancing and $3.69 billion of cofinancing in trade finance, microfinance, and supply chain finance programs. Total outstanding balances and commitments of nonsovereign transactions funded by ADB’s own resources stood at $13.78 billion as of 31 December 2019.

Future Directions

ADB’s operations in Niue will be guided by the Pacific Approach, 2021–2025, which will serve as the country partnership strategy for the bank’s 12 small Pacific island countries.