Cook Islands

Key trends and development challenges

Cook Islands is a self-governing territory in free association with New Zealand, located in the Pacific sub-region of Polynesia. In 2024, the GDP of Cook Islands was $366 million, making it one of the smallest economies in the Pacific. The country has a population of 13,967, resulting in a GDP per capita of $26,220 — among the highest in the Pacific. While its economy is small, Cook Islands has an extensive ocean territory and rich marine resources. The country’s exclusive economic zone (EEZ) spans more than 1.96 million square kilometres, the 20th-largest globally, and is comparable in size to the EEZ of Portugal.

In 2020, Cook Islands graduated from the Organisation for Economic Co-operation and Development’s list of official aid recipients. As such, in 2024 it was the lowest per capita aid recipient in the region. Cook Islands is the first Pacific Islands state to graduate from aid since 2000, an indicator of its strong economic performance and sound fiscal management. Despite its classification as a high-income country, Cook Islands still faces significant growth challenges and remains highly exposed to climatic shocks. The country’s highly dispersed population, spread over 15 islands, significantly increases the per capita cost of basic service delivery.

Cook Islands’ economy relies heavily on tourism, with the leisure sector accounting for around 85% of GDP. The Covid pandemic greatly disrupted the country’s economy, as border closures and slow global tourism rebound hampered growth. Encouragingly, in 2025, total visitor arrivals were more than 176,000, surpassing the previous pre-pandemic record of 172,000 set in 2019 and underscoring the strength of the tourism-led recovery. Among Cook Islands’ key development priorities are the diversification of its economy beyond tourism and the building of climate-adapted public infrastructure. The government also views its seabed minerals as a key opportunity for long-term economic diversification.

Development partners and sector trends

Between 2008 and 2024, annual official development finance (ODF) disbursements to Cook Islands — including grants, loans, and other forms of assistance — averaged $33 million. Over this period, the vast majority (84%) of ODF support to Cook Islands came from four development partners, led by New Zealand (42%), China (21%), the Asian Development Bank (12%), and Australia (9%). Donor concentration in Cook Islands is among the highest in the Pacific.

New Zealand’s aid to Cook Islands has historically focused on education and governance. Conversely, China’s support has focused on infrastructure, in particular the building of government offices, courthouses, and sporting facilities. The last major financing package received by Cook Islands was a $20 million loan from the Asian Infrastructure Investment Bank, through its Covid-19 Crisis Recovery Facility. Despite the addition of this loan, the Asian Development Bank continues to rank Cook Islands’ risk of debt distress as low.

ODF to Cook Islands broadly conforms with regional trends. The largest sector for incoming ODF is government and civil society, which accounts for 32%, below the regional average of 38%. Donors have also focused funds on education (14%), water and sanitation (11%), and energy (8%), all of which see allocations above the regional average.

Since 2008, Cook Islands has received $50 million in development financing with a “principal” focus on either climate adaptation or mitigation. Over this same period, the country has seen $133 million in development financing with a “significant” focus on climate outcomes. Contrasting with regional trends, Cook Islands saw a sharp increase in climate development finance in the early 2010s, but limited growth over the following decade.

As a share of total ODF received by Cook Islands, “principal” climate projects have made up 9% of total spending, above the regional average of 8%. Similarly, spending on “significant” climate projects in Cook Islands made up 24% of incoming funds, well above the regional average of 17%. To date, the most significant climate investment in Cook Islands has been the Pacific Renewable Energy Programme funded by New Zealand, a project building renewable energy infrastructure in the country’s remote outer islands.

Between 2008 and 2024, Cook Islands received $3 million in development financing with a “principal” focus on gender equality, and $127 million in development financing with a “significant” focus on gender equality. “Principal” gender equality financing constituted less than 1% of ODF received by the country, below the regional average of 2%. Meanwhile, “significant” marked gender equality financing made up 23% of incoming ODF, in line with the regional average. The largest project directly targeting gender equality in Cook Islands was the $393,000 Women’s Counselling Centre built by New Zealand in 2012.