Tuvalu’s economy continued its recovery in 2025, with Real Gross Domestic Product (GDP) increasing by 5.2 percent to approximately A$100.0 million at constant 2023 prices. This followed strong growth of 8.6 percent in 2024 and represents the second consecutive year of economic expansion following contractions in 2022 and 2023.
Growth in 2025 was broad-based but was particularly supported by the Industrial Sector, which increased by 24.4 percent, mainly due to stronger construction activity. The Primary Sector grew by 9.5 percent, largely reflecting an increase in fishing, while the Services Sector increased by 3.6 percent and remained the largest component of the Tuvalu economy, accounting for approximately 77.3 percent of Real GDP.
The Gross Domestic Product (GDP) compilation for Tuvalu for the year 2025 was undertaken with the support of a technical assistance (TA) mission from the PFTAC. The mission was conducted from 22nd to 30th May 2025. Mr. Michael Andrews assisted the Tuvalu Central Statistics Division in updating and compiling national accounts estimates in both current and constant 2023 prices.
Real GDP Trends
Figure 1 and 2 below illustrates the trend of Real GDP at constant 2023 prices and growth rates for the years 2016 to 2024.
Sectoral Performance (at Constant 2023 prices)
Sector
Share of Real GDP (2025)
2025 Growth Rate
Key Observations
Primary (Agriculture, Forestry, Fishing)
6.0 %
+9.5 %
Output increased, mainly due to an increase in fishing activity. .
The quarterly inflation rate for the second quarter of the year 2026 was 1.5 per cent. The annual inflation rate was 3.7 per cent suggesting an increase in prices when comparing prices for the second quarter of the year 2026 and the second quarter for the year 2025. The average annual inflation rate was 3.8 per cent.
Year
Quarter
Annual Inflation
Quarterly Inflation
2022
Dec-22
13.7
1.9
2023
Mar-23
12.2
1.1
2023
Jun-23
6.0
0.5
2023
Sep-23
6.2
2.6
2023
Dec-23
3.5
-0.8
2024
Mar-24
3.1
0.7
2024
Jun-24
2.2
-0.3
2024
Sep-24
-2.0
-1.6
2024
Dec-24
-1.8
-0.6
2025
Mar-25
1.2
3.8
2025
Jun-25
1.1
-0.5
2025
Sep-25
3.7
0.9
2025
Dec-25
5.3
1.0
2026
Mar-26
1.8
-0.2
2026
Jun-26
3.7
1.5
QUARTERLY CHANGES
The increase in the quarterly inflation rate which was influenced by an increase in the:
Transport group by 9.0 percent, as a result of the increase in prices for private transport (petrol fuel).
Food by 1.0, a result of an increase in the prices of fish.
Miscellaneous by 0.9 percent, a result of an increase in prices for cleaning materials.
Group
Quarterly Changes
Food
1.0
Alcohol & Tobacco
0.0
Clothing & Textiles
0.0
Transport
9.0
Housing
0.0
Miscellaneous
0.9
ANNUAL CHANGES
The highest contributor to the annual increase was the Transport group which was mainly due to increase in fuel prices. The housing group increased by 4.7 percent mainly due to an increase in prices of household appliances.
An increase of 4.4 percent in the Food group was mainly influenced by an increase in the:
The quarterly inflation rate for the first quarter of the year 2026 was -0.2 per cent. The annual inflation rate was 1.8 per cent suggesting an increase in prices when comparing prices for the first quarter of the year 2026 and the first quarter for the year 2025. The average annual inflation rate was 3.1 per cent.
Year
Quarter
Annual Inflation
Quarterly Inflation
2022
Dec-22
13.7
1.9
2023
Mar-23
12.2
1.1
2023
Jun-23
6.0
0.5
2023
Sep-23
6.2
2.6
2023
Dec-23
3.5
-0.8
2024
Mar-24
3.1
0.7
2024
Jun-24
2.2
-0.3
2024
Sep-24
-2.0
-1.6
2024
Dec-24
-1.8
-0.6
2025
Mar-25
1.2
3.8
2025
Jun-25
1.1
-0.5
2025
Sep-25
3.7
0.9
2025
Dec-25
5.3
1.0
2026
Mar-26
1.8
-0.2
QUARTERLY CHANGES
The decrease in Food group was the main contributor to the quarterly inflation rate which was influenced by a decrease in the prices of the:
Fruits and Vegetables group by 2.4 percent
Dairy Produce group by 1.7 percent
Cereals group by 0.7 percent.
Group
Quarterly Changes
Food
-0.4
Alcohol & Tobacco
0.0
Clothing & Textiles
0.0
Transport
0.0
Housing
0.0
Miscellaneous
-0.2
ANNUAL CHANGES
An increase of 5.2 percent in the Food group was marked as the highest contribution to the increase in the annual inflation rate. This increase was mainly influenced by an increase in the:
The Gross Domestic Product (GDP) compilation for Tuvalu for the year 2024 was undertaken with the support of a technical assistance (TA) mission from the PFTAC. The mission was conducted from 22nd to 30th May 2025 by Mr. Michael Andrews, assisted the Tuvalu Central Statistics Division in updating and compiling national accounts estimates in both current and constant 2016 prices.
Tuvalu’s Gross Domestic Product (GDP) increased by 3.1 percent in real terms in 2024, marking the second consecutive year of economic recovery following the pandemic-induced downturn between 2020 and 2022. Although output has surpassed A$60.7 million at constant 2016 prices, the economy remains below its pre-COVID-19 peak of A$66.1 million recorded in 2019. Growth in 2024 was mainly driven by Construction (+32%), Hotels and Restaurants (+172%), and Trade (+19%), while Public Administration and Agriculture recorded moderate declines. The Tuvalu economy continues to be largely public-sector-driven, with government and state-owned enterprises (SOEs) accounting for about half of total GDP. Private sector activity remains limited but is gradually expanding, particularly in construction, tourism, and other services.
Real GDP Trends
Figure 1 and 2 below illustrates the trend of Real GDP at constant 2016 prices and growth for the years from 2016 to 2024.
Sectoral Performance (at Constant 2016 prices)
Sector
Share of Real GDP (2024)
2024 Growth Rate
Key Observations
Primary (Agriculture, Forestry, Fishing)
7.4 %
-6.3 %
Output declined, mainly due to reduced fishing activity and high operational costs.
The International Merchandise Trade Statistics (IMTS) provides information on Tuvalu’s exports, re-exports and imports of goods between Tuvalu, and the rest of the world. The administrative data used to compile the release is supplied by the Tuvalu Customs department through the online ASYCUDA system.
The Tuvalu CSD compiles the IMTS reports on a quarterly basis with the aim of providing users with reliable trade statistics that reflects Tuvalu’s trade performance, structural trends, and key trading partners in order to support evidence-based economic planning, policy formulation and monitoring.
Imports
The value of Imports fluctuated widely, showing strong dependence on seasonal procurement. The highest import was recorded in July 2024 while the lowest import was recorded in June 2025. This could be a reflection of irregular timing of major shipments. The figure below shows the top commodities with the greatest contribution to Tuvalu’s import from July 2024 to June 2025.
XV Base metals & articles thereof – increased by $1.32 M
IX Wood, cork & articles thereof & plaiting materials – increased by $0.45 M
X Wood pulp, paper & paperboard & articles thereof – increased by $0.12 M
XVI Machinery & mechanical & electrical appliances & parts thereof – decreased by $4.8 M
XX Miscellaneous manufactured articles – decreased by $1.7 M
XIII Articles of stone, plaster, cement, glass & ceramic products – decreased by $1.2 M
Exports
From July 2024 to June 2025, the highest export was recorded in April 2025 with approximately $87.3 thousands. Some of the top contributors to the performance of exports include V Mineral Products ( $51k) and XVI Machinery & mechanical & electrical appliances & parts thereof ($50k).
Balance of Trade
Tuvalu’s trade balance was consistently in deficit. The deepest monthly trade balance was recorded in July 2024 at $9.51 million deficit whereas in June 2025, Tuvalu’s trade balance decreased to $1.90 million deficit.
Trade Markets
Trade by Partner Country demonstrates a prominent trade link between Tuvalu and its Pacific neighboring countries – approximately 62% of Total Imports were from Australia (30%), Fiji (28%) and New Zealand(4%), comparably 71% of total exports were exported to Fiji.
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