Editing Economy of Nauru (section)

== Economic performance ==
In the years after independence in 1968, Nauru possessed the highest GDP per capita in the world due to its rich phosphate deposits.{{citation needed|date=May 2025}} In anticipation of the exhaustion of phosphate deposits, a substantial amount of the income from phosphates was invested in trust funds aiming to help cushion the transition and provide for Nauru's economic future. However, because of heavy spending, including poor foreign investment, the government is now{{when|date=September 2024}} facing bankruptcy. To cut costs the government called for a freeze on wages, a reduction in public service staffing, privatization of numerous government agencies, and closure of some of Nauru's overseas consulates.{{citation needed|date=May 2025}} Economic uncertainty caused by financial mismanagement and corruption, combined with shortages of basic goods, resulted in domestic unrest.{{citation needed|date=May 2025}} In 2004, Nauru was faced with chaos amid political strife and the collapse of the island's telecommunications system. Moreover, the deterioration of housing and hospitals has continued.{{citation needed|date=May 2025}}

Few comprehensive statistics on the Nauru economy exist, with estimates of Nauru's GDP varying widely. According to the U.S. State Department, Nauru's GDP volume was US$1 million in 2004.{{request quotation|date=August 2022}} Nauru receives about US$20 million foreign aid a year from Australia.<ref name="autogenerated1">{{Cite web|url=http://www.countrywatch.com/cw_topic.aspx?type=text&vcountry=122&topic=MAOVR|title=Home Page - CountryWatch|website=www.countrywatch.com|access-date=27 March 2023}}</ref>

The nation's economy has grown significantly since 2012, with help from the reopening of the [[Nauru Regional Processing Centre]], funded by Australia.<ref>{{Cite book|last=Asian Development Bank|author-link=Asian Development Bank|url=https://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1428&context=intl|title=Pacific Economic Monitor: Budget Analysis|publisher=[[Cornell University School of Industrial and Labor Relations]]|year=2014|location=[[Manila]]|pages=8}}</ref>

The most recent 2022-23 Nauru Budget recognized expected revenues of $252.5 million and expenditure of $251.9 million (20% increase from Budget 2021–2022) with a $549,000 surplus balance. The surplus will provide cash reserves at the bank and help Nauru manage future economic uncertainties.<ref name=":0" />