The economy of Nueva Caledonia has experienced its worst recession in 2024 for more than half a century, with a gross domestic product (GDP) in a 13.5%drop, according to a study published on Tuesday by the organization of rapid economic accounts (Cerom).
“In 2024, the Gross Domestic Product of Caledonia registered the sad record of the greatest decrease since the 1960s. It decreased by 13.5% in volume and in 12.6% taking into account the effects of prices,” says Cerom, which brings together the Institute of Statistics of Caledonia (ISEE), the French Development Agency (AFD) and the Upse Teak Institute (IEOM).
GDP is estimated at 943 billion peaceful francs (7.9 billion euros), or 3.5 million francs (29,300 euros) per capita.
Disturbances as catalyst
“The lack of breath of activity began in 2023” was already visible, but the disturbances of May 2024, which left 14 dead, were the catalyst of this recession, the organization specifies. In the context of disputing an electoral reform, they destroyed a large part of Caledon’s economic fabric and caused more than 2.2 billion euros in damages.
Tourism collapsed (-53% of visitors), finding their lowest level for thirty years outside the health crisis, and salaried employment has decreased by almost 12% with the consequence of the “growing precariousness of the population” that “intensifies as public support systems are dressed.”
The Nickel sector, a pillar of the local economy, also suffered the fall in the courses and the closure in August of the Norte factory, which put 1,200 unemployed employees. His participation in the wealth produced fell to 5% in 2024, against 9% the previous year and up to 18% in their best years.
“The vulnerability of an economy depends strongly on the nickel sector today in great difficulty” is the patent, Cerom notes, while this mineral represents almost 90% of Caledonian exports in value.
Source: BFM TV
