Niue and ADB

ADB's Work in Niue

In March 2019, Niue became the 68th and most recent member of ADB.

Niue is one of the world’s smallest countries, with a land area of 259 square kilometers and an estimated population of 1,862 in 2019. Tourism development has been the country’s main driver of economic growth, with improved flight connectivity, accommodation facilities, and destination marketing contributing to an increase in visitor arrivals from about 2,000 in 2005 to 11,000 in 2019. At more than six visitors for every resident, Niue has one of the highest tourist–to–population ratios globally. Meanwhile, fiscal discipline, paired with large and predictable inflows of overseas development assistance, have helped provide macroeconomic stability for the Government of Niue.

The country does, however, face significant challenges in achieving sustained socioeconomic development. In proportionate terms, Niue has experienced the largest population decline of any country in recent history— the resident population was 5,194 people in 1966—and travel restrictions associated with the coronavirus disease (COVID-19) pandemic are having profound impacts on the country’s tourism-dependent economy.

In March 2019, Niue became the 68th and most recent member of the Asian Development Bank (ADB). Since then, ADB has committed a total of $0.5 million in grants and $0.225 million in country-specific technical assistance for Niue. Furthermore, Niue benefits from regional technical assistance projects. Cumulative grant disbursements to Niue amount to $0.5 million. These were financed by other special funds.

Nonsovereign Operations

As a catalyst for private investments, ADB provides financial assistance to nonsovereign projects and financial intermediaries. Total commitments in loans and equity investments from ADB’s own funds in 2020 amounted to $1.4 billion for 38 transactions in economic and social infrastructure, finance sector, and agribusiness. ADB also actively mobilizes cofinancing from commercial and concessional sources. In 2020, ADB mobilized $1.9 billion of long-term project cofinancing and $3.3 billion of cofinancing through its Trade and Supply Chain Finance Program and Microfinance Program. Total outstanding balances and commitments of nonsovereign transactions funded by ADB’s own resources stood at $14.3 billion as of 31 December 2020.

Financing Partnerships

Financing partnerships enable ADB’s financing partners, governments or their agencies, multilateral financing institutions, and commercial organizations to participate in financing ADB projects. The additional funds are provided in the form of loans and grants, technical assistance, and other nonsovereign cofinancing such as B loans, risk transfer arrangements, parallel loans and equity, guarantee cofinancing, and cofinancing for transactions under ADB’s Trade and Supply Chain Finance Program and Microfinance Program.

Future Directions

ADB will continue to support Niue as the country emerges from the COVID-19 pandemic. The bank’s operations will be aligned with the government’s National Strategic Plan, 2016–2026.