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 $26 million, Niue is the smallest economy in the Pacific Islands and one of the smallest in the world. Niue has a population of around 1,800 people, resulting in a GDP per capita of $13,884 — the fourth-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 as defined by the lower bound of the international poverty line. Niue’s national development plan is focused on improving governance and rehabilitating the country’s private sector.

Between 2008 and 2023, annual official development finance (ODF) disbursements to Niue — including grants and other forms of assistance — averaged $23 million. Niue is the only Pacific Islands country to have received no loan financing over the past 15 years.

Development partners and sector trends

The vast majority (97%) of ODF support to Niue in 2023 came from just two development partners — New Zealand (91%) and Australia (6%). 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.

In 2023, the largest active project in Niue was the upgrade to Hanan International Airport, supported by $10.4 million from New Zealand. The country also continued to receive budget support from New Zealand of more than $7 million, as well as additional emergency and supplementary budget support of $6 million. ODF in Niue was heavily weighted towards the government and civil society sectors, with those accounting for 74% of incoming assistance. 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 $23 million in development financing with a “principal” focus on either climate adaptation or mitigation. Over this same period, the country has seen $55 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 Niue’s 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 made up 6% of total spending, below the Pacific regional average of 8%. Conversely, spending on “significant” climate projects in Niue made up 15% of incoming funds, above the regional average of 11%.

Between 2008 and 2023, Niue received $1.3 million in development financing with a “principal” focus on gender equality, and $43 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%. “Significant” marked gender financing made up 11% of incoming ODF, significantly below the regional average of 22%. 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.