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 $30 million, Niue is the smallest economy in the Pacific and one of the smallest in the world. Niue has a population of around 1,815 people, resulting in a GDP per capita of $16,589 — the third-highest in the Pacific.

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 economy was expected to grow by 2.7% in 2025, easing from an estimated 8.7% in 2024 and 6.1% in 2023, continuing its recovery from the pandemic. Niue’s national development plan is focused on improving governance and rehabilitating the country’s private sector.

Between 2008 and 2024, annual official development finance (ODF) disbursements to Niue — including grants and other forms of assistance — averaged $24 million. Niue is the only Pacific Islands country to have received no loan financing over the past 17 years.

Development partners and sector trends

Between 2008 and 2024, the vast majority of ODF support to Niue came from just two development partners — New Zealand (79%) and Australia (13%). Donor concentration in Niue is the highest in the Pacific.

The largest active ODF project in Niue was the upgrade to Hanan International Airport, supported by $10 million from New Zealand. The country also continued to receive budget support from New Zealand of more than $7 million. ODF in Niue was heavily weighted towards the government and civil society sector, accounting for 73% 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 $17 million in development financing with a “principal” focus on either climate adaptation or mitigation. Over this same period, the country has seen $56 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 4% of total spending, below the regional average of 8%. Similarly, spending on “significant” climate projects in Niue made up 14% of incoming funds, also below the regional average of 17%.

Between 2008 and 2024, Niue received $1.8 million in development financing with a “principal” focus on gender equality, and $63 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 15% of incoming ODF, well below the regional average of 23%. 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.