Economy of Réunion

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Economy - overview: The economy has traditionally been based on agriculture. Sugarcane has been the primary crop for more than a century, and in some years it accounts for 85% of exports. The government has been pushing the development of a tourist industry to relieve high unemployment, which amounts to more than 40% of the labor force. The gap in Réunion between the well-off and the poor is extraordinary and accounts for the persistent social tensions. The white and Indian communities are substantially better off than other segments of the population, often approaching European standards, whereas minority groups suffer the poverty and unemployment typical of the poorer nations of the African continent. The outbreak of severe rioting in February 1991 illustrated the seriousness of socioeconomic tensions. However, this gap has been closing in the last 15 years. The economic well-being of Réunion depends heavily on continued financial assistance from France.

Sugar is the chief agricultural product and export. Tourism is also an important source of income. As of 2005, they earned a PPP per capita annual GDP of some $6,200 US dollars. However, while this is exceptionally high compared with its neighbors in Madagascar and the African continent, it is only 20% of the $29,600 per capita GDP of France as a whole. The island is highly dependent on aid from continental France. The total GDP of the island was $4.79 billion (2005 est.) ^[1]

Currency: 1 Euro (currency sign: €; banking code: EUR) = 100 Cent

Exchange rates: See: Euro exchange rate

Fiscal year: calendar year