Niue’s economy grew by an estimated 3.8 percent in 2024 and 8.9 percent in 2023, the combined result of infrastructure projects and tourism reopening. Looking forward, growth is forecast to fall to 0.8 percent for 2025 and 0.4 2026, reflecting the road and airport resealing projects concluding, and the limitations in tourism accommodation. Inflation for June is at 4.7 percent, and expected to follow easing prices abroad.
While progress has been made with tourism recovery, arrivals in 2024 are still 32 percent below 2019 levels, with accommodation being a key constraint. EFTPOS spending continues to increase, with $24.32 million total for 2024 already matching the 2023 total, excluding May and June data.
Fuel imports for 2024 were 33 percent higher than 2023, due to increased diesel power generation. Investments in accommodation are required to build on the tourism momentum coming out of the pandemic. This is also critical for new workers to ease the tight labor market conditions that persist on Niue.