Oceania is a geographic region that spans the western and eastern hemispheres and consists of Australasia, Polynesia, Micronesia, and Melanesia. It covers an area of about 3,291,903 sq miles and a population of 40 million spread across 14 countries. Australia is the largest economy in Oceania with a nominal per capita of $51,593 and a Purchasing Power Parity (PPP) of $48,806. This article looks at countries with the lowers GDP in Oceania.
The Poorest Countries in Oceania
As at 2016 Kiribati's economy was estimated at $165.8 million. The nominal per capita income stood at $1,427 while the PPP stood at $1,821. The public sector is the dominant sector of the economy and accounts for about 50% of the GDP and two-thirds of the formal employment. A minuscule proportion of the labor force earns a salary, a large proportion depends on fishing and subsistence farming. The economy largely depends on international remittance of citizens working overseas. Several crucial sectors of the economy, such as the financial sectors, are underdeveloped and hinder the growth of other sectors.
As of 2016, the Solomon Islands had a Gross Domestic Product valued at $1.2 billion. In the same year, the country's nominal GDP stood at $2,028 while the PPP was $1,996. The country experienced a 3.3% economic growth compared to 2015 and an inflation rate of -0.4%. Tourism, gold mining, fishing, and exports of copra and palm oil are the largest contributors to the economy that also relies heavily upon remittance. Imports and exports equal 98% of the GDP. The financial sector is underdeveloped, and nearly all the enterprises are privately owned.
Papua New Guinea
As of 2014, the GDP of Papua New Guinea was estimated at $16.9 billion. The country's nominal per capita stood at $2,517 while its PPP stood at $3,542. The economy is divided between the formal sector and the informal sector. The country relies on the export of natural resources while its population mainly engages in subsistence farming and fishing, and other small-scale economic activities. In the recent past, the government has been involved in activities aimed at regulating the private industry including increasing the cost of running private businesses.
The Federated States Of Micronesia
The Federated States of Micronesia (FSM), is an independent country that is significantly linked to the United States. It consists of four states: Yap, Chuuk, Pohnpei, and Kosrae. Together, the Federated States of Micronesia consists of 607 islands. Despite a GDP of only $322 million as at 2016, FSM had a nominal per capita income of $3,142 and a PPP of $3,033.
The Economy of Oceania
The average per capita income of Oceania is $37,220 while the PPP is $35, 690. Australia and New Zealand are the only first world countries in the region. The other states rely on trade with the two countries, alongside the US, Japan, China, and South Korea. Tourism is among the largest sectors of the economy due to their location, and it is estimated that a single country such as Fiji generates revenues of about $1 billion annually from tourism.
Country GDP in Oceania
|Rank||Country||Per Capita GDP|
|11||Federated States of Micronesia||3,000|
|12||Papua New Guinea||2,400|