Economy of Réunion

From Wikipedia, the free encyclopedia

Economy - overview: The economy has traditionally been based on agriculture. Sugarcane has been the primary crop for more than a century, and in some years it accounts for 85% of exports. The government has been pushing the development of a tourist industry to relieve high unemployment, which amounts to more than 40% of the labor force. The gap in Réunion between the well-off and the poor is extraordinary and accounts for the persistent social tensions. The white and Indian communities are substantially better off than other segments of the population, often approaching European standards, whereas minority groups suffer the poverty and unemployment typical of the poorer nations of the African continent. The outbreak of severe rioting in February 1991 illustrated the seriousness of socioeconomic tensions. However, this gap has been closing in the last 15 years. The economic well-being of Réunion depends heavily on continued financial assistance from France.

GDP: purchasing power parity - $3.4 billion (1998 est.)

GDP - real growth rate: 3.8% (1998 est.)

GDP - per capita: purchasing power parity - $4,800 (1998 est.)

GDP - composition by sector:
agriculture: NA%
industry: NA%
services: NA%

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): NA%

Labor force: 261,000 (1995)

Labor force - by occupation: agriculture 8%, industry 19%, services 73% (1990)

Unemployment rate: 42.8% (1998)

Budget:
revenues: $1.2 billion
expenditures: $2.6 billion, including capital expenditures of $260 million (1995)

Industries: sugar, rum, cigarettes, handicraft items, flower oil extraction

Industrial production growth rate: NA%

Electricity - production: 1,110 GWh (1998)

Electricity - production by source:
fossil fuel: 54.05%
hydro: 45.95%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 1,032 GWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

Agriculture - products: sugarcane, vanilla, tobacco, tropical fruits, vegetables, maize

Exports: $214.162 million (f.o.b., 1997)

Exports - commodities: sugar 63%, rum and molasses 4%, perfume essences 2%, lobster 3%, (1993)

Exports - partners: France 74%, Japan 6%, Comoros 4% (1994)

Imports: $2.5 billion (c.i.f., 1997)

Imports - commodities: manufactured goods, food, beverages, tobacco, machinery and transportation equipment, raw materials, and petroleum products

Imports - partners: France 64%, Bahrain 3%, Germany 3%, Italy 3% (1994)

Debt - external: $NA

Economic aid - recipient: $NA; note - substantial annual subsidies from France

Currency: 1 Euro (F) = 100 cent

Exchange rates: euros per US$1 - 0.9867 (January 2000), 0.9386 (1999); French francs (F) per US$1 - 5.65 (January 1999), 5.8995 (1998), 5.8367 (1997), 5.1155 (1996), 4.9915 (1995)

Fiscal year: calendar year

See also: Réunion