1. Young & emerging economy with outstanding performance
Kiribati is a young and emerging economy showing strong growth momentum within the Pacific region. Its performance has consistently outpaced many regional peers, reflecting a stable macroeconomic environment and growing investor interest. With a supportive policy framework and expanding opportunities across key sectors, Kiribati offers an attractive destination for forward-looking investment.
Key drivers and dynamics of Kiribati’s GDP
- Dynamic emerging economy: Despite its small size (US$279m), Kiribati stands out as one of the most rapidly growing markets in the Pacific region.
- Outstanding performance: Over the past 5 years (2018-2023) Kiribati achieved an annual average growth rate of 3.6%, exceeding the East Asia & Pacific (3.0%) and Pacific Island States (0.7%) average.
- Rapid projected growth: With projected GDP growth of 4.1% in 2025, Kiribati is set to maintain its upward trajectory, outpacing the average for Pacific Island states (3.9%) and the World (2.7%).
Note: GDP size at current USD prices. Growth on constant process. - * CAGR: Compound annual growth rate. - Source: The World Bank Database (https://databank.worldbank.org/source/world-development-indicators#)
- High sectoral concentration: Agriculture, Public administration and Wholesale & retail collectively contribute to over 45% of the GDP, creating a need for economic diversification.
*Other: Finance 5.0%, Manufacturing 4.6%, Transport & storage 4.6%, Health 4.3%, Accommodation & food service 3.1%, Other 3.4%. - Source: Kiribati National Statistics Office (GDP at constant prices) (https://nso.gov.ki/statistics/)
Emerging and dynamic macroeconomy
Kiribati is an emerging and dynamic economy in the Pacific, showing steady progress across key indicators. Compared to some of its neighbors, the country has demonstrated positive trends in GDP per capita, stable population growth, unemployment, and manageable inflation levels.
Note: GDP at current USD prices. Inflation average consumer prices. - * Latest available figures are for year 2020. - Source: The World Bank Database (https://databank.worldbank.org/source/world-development-indicators#) - Kiribati National Statistics Office https://nso.gov.ki/statistics/)
Foreign Direct Investment (FDI) growth in Kiribati
- Dynamic growth: Despite being the smallest FDI recipient in the region and experiencing some cyclical disinvestments, Kiribati has recorded growth in foreign direct investment inflows, with an average annual increase of 19.8% over the past 10 years, demonstrating rising investor interest and confidence.
- Top investors: China, Fiji and USA stand out as top 3 source of investment in Kiribati, accounting over 57% of the investment projects, equivalent to 22.
- Leading recipient sectors: Fisheries, Distribution and Construction emerge as the top 3 sectors receiving FDI in Kiribati, accounting for over 50% of the investment projects, equivalent to 19.
¹ Number of Foreign Investment Certificates issued by the Investment Promotion Division (IPD). - ² CAGR: Compound annual growth rate. - Source: World Bank Data base - Ministry of Tourism, Commerce, Industry and Cooperatives (MTCIC)