The current Head of Government, Premier Sani Lakatani, led his Niue People's Party to victory in general elections in March 1999. Economic Overview Niue experiences many of the development constraints common to other Pacific island micro-states, including geographic isolation, limited natural resources and a small population. The basic productive activity on Niue is subsistence agriculture and there is a small export trade of primary products, such as taro, limes and honey. There is also a small tourism industry but the Government is the main employer. Under the terms of the constitutional agreement between the two countries, New Zealand provides substantial economic and administrative assistance to Niue.
Economic assistance is provided in the forms of both direct budget support and project-related aid.
New sources of income International banking, fishing licences and the international lease of Niue's unique four digit telephone numbers are important income earners for the country. Remittances from Niueans living abroad supplement the income of many island families. Niue's declining population has been a concern to successive governments. Despite government attempts to persuade Niueans to return home, three times as many Niueans currently live in New Zealand than in Niue, with the trend continuing. Foreign Relations Niue's strongest ties are with New Zealand, where Niue maintains its only diplomatic office overseas.