Editing Economy of Tuvalu (section)

==Tuvalu's economy==
{{see also|Agriculture in Tuvalu}}

===Fishing resources===
Tuvaluans are primarily involved in traditional agriculture and fishing. Job opportunities also exist as observers on tuna boats where the role is to monitor compliance with the boat's tuna fishing licence.<ref name="TO0315">{{cite web| last =Dornan | first =Matthew | work= The Conversation |title= The Pacific islands 'tuna cartel' is boosting jobs by watching fish|date =4 March 2015|url= http://theconversation.com/the-pacific-islands-tuna-cartel-is-boosting-jobs-by-watching-fish-38177| access-date=10 March 2015}}</ref>

The Tuvaluan economy, therefore, relies heavily on its fishing income, with 42% of the Tuvaluan population involved in fishing activity at various levels. The fishing in the [[Exclusive Economic Zone]] (EEZ) mainly consists of [[Skipjack Tuna]], [[Yellowfin Tuna]] and [[Bigeye Tuna]]. UN Data calculated a gross value of fisheries at US$43,773,582 (2007 est), which accounted for the output of coastal commercial fishing, coastal [[subsistence fishing]], locally based offshore fishing, foreign-based offshore fishing, freshwater fishing and [[aquaculture]]. In recent years all of the income has been generated through the listed activities in Tuvalu waters, rather than through exports direct from Tuvalu. The activities of international [[fishing vessels]], which in 2008 comprised 42 [[longline fishing]] vessels, 3 pole/line vessels and 126 [[purse seiners]], far outweigh domestic activity, with a production volume of 35,541 tonnes worth US$40,924,370 (2009 est) or 93.5% of gross value, although Tuvalu retains a sizeable share in income via licensing. Fishing licensing agreements with Taiwan, Japan, South Korea, New Zealand and the United States generated an income of A$9 million in 2009.<ref>{{cite web |title=Tuvalu |url=http://www.mfat.govt.nz/Countries/Pacific/Tuvalu.php |archive-url=https://web.archive.org/web/20150703185251/http://www.mfat.govt.nz/Countries/Pacific/Tuvalu.php |archive-date=2015-07-03 |access-date=22 December 2011 |work=New Zealand Ministry of Foreign Affairs & Trade}}</ref><ref>{{cite web|title=Doing Business in Tuvalu|url=http://www.pitic.org.au/pdfs/bigs/tuvalu.pdf|work=Pacific Islands Trade and Investment Commission, Sydney Creating Opportunities Between Australia and the Pacific|access-date=21 December 2011|archive-url=https://web.archive.org/web/20120410142849/http://www.pitic.org.au/pdfs/bigs/tuvalu.pdf|archive-date=10 April 2012|url-status=dead}}</ref> In 2013 revenue from fishing licenses doubled to more than 45% of GDP.<ref name ="CIA">{{cite web|url=https://www.cia.gov/the-world-factbook/countries/tuvalu/|title=The World Factbook (CIA)|date=2017|access-date= 20 October 2018}}</ref>

On 29 June 2017, the National Fishing Corporation of Tuvalu (NAFICOT), signed a joint venture agreement with the Republic of Korea's SAJO Fishing Industry to operate the fishing vessel ''M.V. Taina'' within the Tuvaluan EEZ and other Pacific Island waters.<ref name="FN030717">{{cite web| work= Fenui News|title= Tuvalu and SAJO sign Joint Venture Agreement|date =3 July 2017|url= https://www.facebook.com/fenuinews/?ref=page_internal&fref=nf| access-date=6 July 2017}}</ref><ref name="TV-2017">{{cite web| last =| first = |title= Joint Venture Agreement Signed: National Fishing Corporation of Tuvalu (NAFICOT), SAJO and O Yong Fishing Industry|publisher= Tuvalu Fisheries (Tuvalu Ministry of Natural Resources)|page=|date = 30 June 2017 |url= https://tuvalufisheries.tv/news/page/8/| accessdate=11 August 2021}}</ref>

The 2021 Budget of Tuvalu  set out a shift in government policy regarding engagement in fishing activities, with a shift from joint venture arrangements (including the  sale of  ''FV Taumoana'' for $10.4 million) to just receiving revenue from fishing licenses and receiving management fees for flagged ships.<ref name="TP11-2020">{{cite web| last = Tausi | first = Kitiona |title= More Issues On The 2021 Budget |publisher= Tuvalu Paradise, Issue No. 11/2020  |page=|date = 18 December 2020|url= https://tuvaluparadise.tv/2020/12/18/more-issues-on-the-2021-budget/| accessdate=11 August 2021}}</ref>

===Remittances from Tuvaluan seafarers===
{{see also|Tuvalu Overseas Seamen's Union}}
Tuvalu men have for some time been employed abroad, working on container ships, primarily on [[Germany|German]]-owned ships. Remittances from seafarers is a major source of income for their families in Tuvalu. In 2002, the [[Asian Development Bank]] (ADB) approved an assistance package to upgrade the [[Tuvalu Maritime Training Institute]] (TMTI) which trains young Tuvaluans so they can work aboard foreign vessels.<ref name=adb>{{cite web | url= https://www.adb.org/countries/tuvalu/main|title=Asian Development Bank (Tuvalu)|access-date=17 December 2016}}</ref> This project was completed in 2011.<ref name="ADB2011">{{cite book|title=Maritime Training Project: Program Completion Reports |date=September 2011 |publisher=Asian Development Bank |url=http://www.adb.org/documents/tuvalu-maritime-training-project |access-date=1 October 2017 |archive-url=https://web.archive.org/web/20141208040848/http://adb.org/sites/default/files/projdocs/2011/32407-013-tuv-pcr.pdf |archive-date=8 December 2014 }}</ref>

The [[Great Recession]] impacted global export-import activities and the demand for shipping, which reduced the need for Tuvaluan seafarers.<ref name="UNICEF_TV">{{cite web|work= UNICEF|title= Voices of the Vulnerable in the Pacific: Summary Note ('The Global Economic Crisis impact on Tuvalu Seafarers Remittance: the story of Tangata's Family')|url= http://www.unicef.org/pacificislands/Voices_of_the_Vulnerable_in_the_Pacific_SG_report_FINAL_for_website.pdf|access-date= 6 August 2013|archive-date= 22 December 2012|archive-url= https://web.archive.org/web/20121222044232/http://www.unicef.org/pacificislands/Voices_of_the_Vulnerable_in_the_Pacific_SG_report_FINAL_for_website.pdf|url-status= dead}}</ref><ref name="MDG">{{cite web | work= Ministry of Education and Sports, and Ministry of Finance and Economic Development from the Government of Tuvalu; and the United Nations System in the Pacific Islands | title= Tuvalu: Millennium Development Goal Acceleration Framework - Improving Quality of Education | date= April 2013 | url= http://www.undp.org/content/dam/undp/library/MDG/MDG%20Acceleration%20Framework/MAF%20Reports/RBAP/MAF%20Tuvalu-FINAL-%20April%204.pdf | access-date= 13 October 2013 | archive-date= 13 February 2014 | archive-url= https://web.archive.org/web/20140213133607/http://www.undp.org/content/dam/undp/library/MDG/MDG%20Acceleration%20Framework/MAF%20Reports/RBAP/MAF%20Tuvalu-FINAL-%20April%204.pdf | url-status= dead }}</ref>

The 1991 census identified 272 seaman working on merchant ships. In 2002 the Tuvaluan Overseas Seaman's Union (TOSU) estimated the number as 417 seaman working on ships.<ref name="SBDB">{{cite web|author1=Stephen Boland |author2=Brian Dollery |title=The Economic Significance of Migration and Remittances in Tuvalu |year=2005 |publisher=University of New England, School of Economics, Working Paper Series No. 2005-10 |url=http://www.une.edu.au/__data/assets/pdf_file/0011/67970/econ-2005-10.pdf|access-date=28 January 2013 }}</ref> In 2011 the ADB estimated there were 800 TMTI graduates registered for employment as seafarers.<ref name="ADB2011"/> The ADB identified that the number of Tuvaluans employed as seafarers has decreased steadily from about 340 in 2001 to only 205 in 2010; so that of a total pool of 800 qualified seafarers, including those on leave, almost 450 were unemployed. This decline in seafarer employment has reduced remittances from $2.4 million in 2001 to a projected $1.2 million in 2010.<ref name="ADB2011"/> The [[International Labour Organization]] (ILO) also estimates that in 2010 there were approximately 200 Tuvaluan seafarers on ships. The [[International Monetary Fund]] 2014 Country Report described the effect of the GFC as reducing demand for the services of Tuvaluan seafarers. As of October 2013, there were about 112 Tuvalu seafarers working on cargo ships, compared to 361 in 2006. The consequence is that remittances from seafarers to their families in Tuvalu fell by about 9% of GDP for Tuvalu. In 2012 such remittances were 10% of GDP for Tuvalu.<ref name="2014IMF27">{{cite web|title= Tuvalu: 2014 Article IV Consultation-Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Tuvalu|url= https://www.imf.org/external/pubs/ft/scr/2014/cr14253.pdf|publisher= International Monetary Fund Country Report No. 14/253|page=27|date=5 August 2014|access-date=21 March 2016}}</ref>

While a budget deficit of A$0.4 million was projected for 2015, the ADB assessed the budget as being A$14.3m in surplus as the result of high tuna fish license fees. The ADB predicted that the 2% growth rate for 2015 would continue into 2016.<ref name="IBjan16">{{cite web |date=January 2016 |title=Development and consolidation crucial for Sopoaga |url=http://www.islandsbusiness.com/2012/item/1434-development-and-consolidation-crucial-for-sopoaga |archive-url=https://web.archive.org/web/20190321133625/https://www.islandsbusiness.com/2012/item/1434-development-and-consolidation-crucial-for-sopoaga |archive-date=2019-03-21 |access-date=17 December 2016 |work=Island Business}}</ref>

===Economic vulnerability===
[[File:Tuvalu - Funafuti - Approach.jpg|thumb|left|250px|[[Funafuti]]]]
From 1996 to 2002, Tuvalu was one of the best performing Pacific Island economies and achieved an average real gross domestic product (GDP) growth rate of 5.6% per annum. Since 2002 economic growth has slowed as Tuvalu was exposed to rapid rises in world prices of fuel and food with the level of inflation peaking at 10% in 2008,<ref name="IMF 2010"/> and falling to 0% in November 2010.<ref name="IMF 2010">{{cite web|title= Tuvalu: 2010 Article IV Consultation-Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Tuvalu|url= https://www.imf.org/external/pubs/cat/longres.aspx?sk=24632.0|publisher= International Monetary Fund Country Report No. 11/46|date=8 February 2011|access-date=4 September 2011}}</ref>

However, due to the acute level of geographic, macroeconomic and financial isolation, scale of area, population infrastructure and agriculture, climate change, oil dependency, contracting GDP and economic dependency many sources in this decade view Tuvalu as an extremely vulnerable economy.<ref name="un.org">{{cite web|title=TUVALU: ECONOMIC OVERVIEW AND MAJOR CHALLENGES|url=https://www.un.org/en/development/desa/policy/cdp/ldc/profile/plen4c_cdp2009.pdf|work=UN|access-date=20 December 2011}}</ref> The country is also dependent on imported fuel, with gas prices quoted at $12/gal (2009). The high cost of petroleum products has encouraged the development of projects to access [[renewable energy in Tuvalu]].

Although listed by the UN as a Lower Middle Income [[Least developed country|LDC]], it scores very high in terms of Economic Vulnerability Index, with a rating of 79.7 out of 100 in 2009, leading the UN to state that Tuvalu is the most "economically vulnerable country in the world". Due to the factors addressed earlier, Tuvalu yields limited revenue from exports.<ref>{{cite web|title=October 31, 2011, Bureau of East Asian and Pacific Affairs Background Note: Tuvalu|url=https://2009-2017.state.gov/r/pa/ei/bgn/16479.htm|work=U.S.Department of State|access-date=23 December 2011}}</ref>