Niue

Key trends and development challenges

Niue is a self-governing territory in “free association” with New Zealand, located in the Pacific sub-region of Polynesia. With a GDP of $31 million, Niue is the smallest economy in the Pacific, accounting for less than 0.1% of regional GDP. Niue has a population of around 3,000 (2022), resulting in a GDP per capita of $18,300 — the highest in the Pacific and just below the Organisation for Economic Co-operation and Development’s high-income classification.

While it is classified as a small island developing state, Niue has high levels of human development and zero poverty, which is internationally defined as earning less than $2.15 per person per day. Niue’s national development plan is focused on improving governance and rehabilitating the country’s private sector.

Between 2008 and 2022, annual Official Development Finance (ODF) disbursements to Niue — including grants and other forms of assistance — averaged $22 million. Niue is the only Pacific Islands country to have received no loan financing over the past 15 years. The country is also the highest per capita aid recipient in the Pacific, in large part a product of its small population size.

Development partners and sector trends

The vast majority (94%) of ODF support to Niue has come from just three development partners, led by New Zealand (78%), Australia (13%), and the European Union (3%). Donor concentration in Niue is the highest in the Pacific, with New Zealand’s level of support representing one of the highest donor-recipient concentrations in the region.

ODF in Niue is heavily weighted towards the government and civil society, with the sector accounting for 70% of incoming assistance. This also represents the highest sector concentration seen in any recipient in the region. Human development spending in Niue has always been relatively low, in part due to the country’s pre-existing, strong education and health services. Since 2016, the country has seen a growing emphasis on climate-resilient infrastructure.

Since 2008, Niue has received $15 million in development financing with a “principal” focus on either climate adaptation or mitigation. Over this same period, the country has seen $45 million in development financing with a “significant” focus on climate outcomes. Niue is distinct in the Pacific in that it has seen a decline in climate-targeting projects since the mid-2010s. However, this is likely a product of the size of the Niue economy and the impact of a handful of large projects distorting the trend. As a share of total ODF received by Niue, “principal” climate projects make up 5% of total spending, below the regional average of 9%. Conversely, spending on “significant” climate projects in Niue makes up 15% of incoming funds, above the regional average of 13%.

Between 2008 and 2022, Niue received $1 million in development financing with a “principal” focus on gender equality, and $28 million in development financing with a “significant” focus on gender equality. “Principal” gender equality financing constituted 0.4% of ODF received by the country, below the regional average of 2%. Notably, “significant” marked gender financing made up 9% of incoming ODF, significantly below the regional average of 21%. The largest project directly targeting gender equality in Niue was the multi-year $330,000 Gender Equality and Women’s Empowerment program, funded by Australia.