Economy Of Reunion

Economy overview The economy has traditionally been based on agriculture, but services now dominate. 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 one-third of the labor force. The gap in Reunion 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 illustrates the seriousness of socioeconomic tensions. The economic well-being of Reunion depends heavily on continued financial assistance from France.
 
GDP purchasing power parity - $4.348 billion (2004 est.)
 
GDP - real growth rate 2.5% (2004 est.)
 
GDP - per capita purchasing power parity - $5,800 (2004 est.)
 
GDP - composition by sector
agriculture: 8%
industry: 19%
services: 73% (2000 est.)
 
Investment gross fixed  
Population below poverty line NA
 
Household income or consumption by percentage share
lowest 10%: NA
highest 10%: NA
 
Distribution of family income - Gini index  
Inflation rate consumer prices NA
 
Labor force 309,900 (2000)
 
Labor force by occupation agriculture 13%, industry 12%, services 75% (2000)
 
Unemployment rate 36% (1999 est.)
 
Budget
revenues: $1.26 billion
expenditures: $2.62 billion, including capital expenditures of NA (1998)
 
Public debt  
Agriculture products sugarcane, vanilla, tobacco, tropical fruits, vegetables, corn
 
Industries sugar, rum, cigarettes, handicraft items, flower oil extraction
 
Industrial production growth rate NA
 
Electricity production 1.08 billion kWh (2001)
 
Electricity production by source
fossil fuel: 55.5%
hydro: 44.5%
other: 0% (2001)
nuclear: 0%
 
Electricity consumption 1.005 billion kWh (2001)
 
Electricity exports 0 kWh (2001)
 
Electricity imports 0 kWh (2001)
 
Oil production 0 bbl/day (2001 est.)
 
Oil consumption 18,000 bbl/day (2001 est.)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves  
Natural gas production  
Natural gas consumption  
Natural gas exports  
Natural gas imports  
Natural gas proved reserves  
Current account balance  
Exports $214 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% (2000)
 
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% (2000)
 
Reserves of foreign exchange gold  
Debt external NA
 
Economic aid recipient $NA; note - substantial annual subsidies from France (2001 est.)
 
Currency euro (EUR)
 
Currency code EUR
 
Exchange rates euros per US dollar - 0.886 (2003), 1.0626 (2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999)
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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