Niue, one of the world’s smallest self-governing nations, is projecting economic growth of 3.4 per cent in 2025, driven by an uptick in public infrastructure investments and a rebound in tourism following years of pandemic-induced disruption. This growth, while modest in scale, represents an important recovery step for the island nation of just over 1,600 residents.
The Pacific nation’s economy has long depended on a mix of aid, remittances, and niche tourism. In recent years, however, Niue has placed greater emphasis on building physical infrastructure to support local development and resilience. With funding support from New Zealand and development partners, the government has prioritised improvements to roads, water systems, coastal defences, and public buildings —not only to stimulate job creation and business activity in the short term, but also to address the existential challenges posed by climate change.
As a coral atoll rising just metres above sea level, Niue faces increasing threats from coastal erosion, extreme weather events, and rising sea levels. Infrastructure investments are being designed with climate resilience in mind, ensuring that roads, ports, and public facilities can withstand future shocks while enhancing the island’s economic capacity.
At the same time, tourism is showing signs of renewed momentum, with visitor numbers recovering steadily in 2024 and expected to return to near pre-pandemic levels in 2025. Niue’s pristine environment, marine biodiversity, and small-scale eco-tourism offerings appeal to high-value, low-impact travellers, many of whom are increasingly drawn by sustainable tourism experiences.
The return of visitors is expected to boost hospitality, retail, local transport, and cultural enterprises. Meanwhile, the government has also increased its focus on digital infrastructure and online marketing to better position Niue in global travel markets.
Together, these infrastructure and tourism developments are projected to boost construction output, support small businesses, and improve livelihoods across the island. While the economic base remains narrow, Niue’s careful focus on sustainability, resilience, and strategic investment is creating a model for inclusive, climate-conscious growth in the Pacific.
In a region where vulnerability is often the headline, Niue’s story in 2025 is one of steady resilience, strategic planning, and cautiously optimistic growth.
