Niue is a self-governing country in free association with New Zealand. A coral island of 260 square kilometres, Niue is located about 480 kilometres east of Tonga and 560 kilometres south-east of Samoa.
Niue faces economic challenges common to small island states, including geographic isolation, limited natural resources, transport, poor communications and a lack of skilled labour. A small population is diminished by high rates of migration as there are limited employment prospects in the country.
Niue is highly vulnerable to the impacts of climate change, particularly rising seas levels, droughts and storms.
The tourism industry is a vital sector in the economy, but can be occasionally affected by cyclones. Fishing licences and the international lease of Niue's unique four-digit telephone numbers are important income earners for the country, while remittances from Niueans living abroad supplement the income of island families. Noni-juice production also provides ongoing employment opportunities.
Australia’s development contribution in Niue focuses on education and waste management. In 2020, Australia’s assistance is expanding to include economic development and strengthening governance institutions.