Economy of Réunion explained

The economy of Réunion 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 labour force.

The gap in Réunion between the well-off and the poor is large and accounts for persistent social tensions.^[1] The outbreak of severe rioting in February 1991 illustrated the seriousness of socio-economic tensions.^[2]

In 2007 the GDP per capita of Réunion at nominal exchange rates, not at PPP, was €17,146 (US$23,501).^[3] However, while this is exceptionally high compared with its neighbours in Madagascar and the African continent, it is only 57% of the 30,140 euros per capita GDP of metropolitan France in 2007.Reunion Island is one of the French departments with the highest poverty rate with 42% of the population living below the poverty line. ^[4] The total GDP of the island was US$18.8 billion in 2007.

Other export products

• Essential oil (mainly vetyver and rose scent geranium)
• Bourbon vanilla
• Fish & seafood, mainly tuna, swordfish and Patagonian toothfish

Statistics

• Currency: 1 euro (sign: €; code: EUR) = 100 Cent
• Exchange rates: See: Euro exchange rate
• Fiscal year: calendar year

See also

• Economy of France in: French Guiana, French Polynesia, Guadeloupe, Martinique, Mayotte, New Caledonia, Réunion, Saint Barthélemy, Saint Martin, Saint Pierre and Miquelon, Wallis and Futuna
• Taxation in France
• Economic history of France
• Poverty in France

Notes and References

1. Web site: Reunion profile . BBC News . July 11, 2011 . April 16, 2024.
2. News: Three nights of riots in Reunion Island: Why "the Cauldron" is boiling over . The Observers - France 24 . February 24, 2012 . April 16, 2024.
3. Web site: INSEE Réunion . INSEE . 8.1 - ÉCONOMIE GÉNÉRALES . https://web.archive.org/web/20081217225700/http://www.insee.fr/fr/insee_regions/reunion/themes/dossiers/ter/ter2008_resultats_economiques.pdf . Dec 17, 2008 . 2008-12-10 . French.
4. Web site: Produits Intérieurs Bruts Régionaux en euros par habitant. Institut National de la Statistique et des Études Économiques. XLS. 2008-12-10. fr.