e first
government in decades to serve a full five-year term. The government
has also brought stability to the national budget thus far, largely
through expenditure control. Numerous challenges still face the
government including regaining investor confidence, restoring
integrity to state institutions, promoting economic efficiency by
privatizing moribund state institutions, and balancing relations
with Australia, the former colonial ruler. Other socio-cultural
challenges could upend the economy including a worsening HIV/Aids
epidemic and chronic law and order and land tenure issues. Australia
annually supplies $240 million in aid, which accounts for nearly 20%
of the national budget.

GDP (purchasing power parity):
$15.13 billion (2006 est.)

GDP (official exchange rate):
$4.148 billion (2006 est.)

GDP - real growth rate:
3.2% (2006 est.)

GDP - per capita (PPP):
$2,700 (2006 est.)

GDP - composition by sector:
agriculture: 35.7%
industry: 37.1%
services: 27.2% (2006 est.)

Labor force:
3.477 million (2006 est.)

Labor force - by occupation:
agriculture: 85%
industry: NA%
services: NA%

Unemployment rate:
2% up to 80% in urban areas (2004)

Population below poverty line:
37% (2002 est.)

Household income or consumption by percentage share:
lowest 10%: 1.7%
highest 10%: 40.5% (1996)

Distribution of family income - Gini index:
50.9 (1996)

Inflation rate (consumer prices):
2.5% (2006 est.)

Investment (gross fixed):
19.2% of GDP (2006 est.)

Budget:
revenues: $2.155 billion
expenditures: $2.166 billion; including capital expenditures of $344
million (2006 est.)

Public debt:
53.7% of GDP (2006 est.)

Agriculture - products:
coffee, cocoa, copra, palm kernels, tea, sugar, rubber, sweet
potatoes, fruit, vegetables, vanilla; shell fish, poultry, pork

Industries:
copra crushing, palm oil processing, plywood production, wood chip
production; mining of gold, silver, and copper; crude oil
production, petroleum refining; construction, tourism

Industrial production growth rate:
NA%

Electricity - production:
3.358 billion kWh (2004)

Electricity - production by source:
fossil fuel: 54.1%
hydro: 45.9%
nuclear: 0%
other: 0% (2001)

Electricity - consumption:
3.123 billion kWh (2004)

Electricity - exports:
0 kWh (2004)

Electricity - imports:
0 kWh (2004)

Oil - production:
5