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Economy and Financial System of Wallis and Futuna Islands

Economic Structure

The economy of Wallis and Futuna Islands, a French overseas collectivity in the Pacific Ocean, has a significant construction industry sector. Here are some key points about its economic structure:

  • Construction Industry: The construction industry accounts for 14.9% of registered companies and employs 15.4% of the private sector workforce.
  • Industry Boosters: Projects launched by the State via development contracts and those financed by the European Development Fund (EDF) mainly boost the industry.
  • Low Household Demand: Due to the lack of property financing mechanisms in the Territory since 2004, household demand is low.

Financial System

The financial system of Wallis and Futuna Islands is relatively small. Here are some key points about its financial structure:

  • Retail Banking: There is only one retail bank, Wallis and Futuna Bank (BWF), which has been operating on the archipelago for about 20 years.
  • Public Finance Directorate: The Public Finance Directorate of the Wallis and Futuna Islands also provides personal banking services.
  • Other Institutions: Other institutions operating in the Territory include AFD, EIB, and a few New Caledonian banks. ADIE offers micro-credits to small entities.

Financial Indicators

Here are some key financial indicators for Wallis and Futuna Islands:

  • Total Outstanding Performing Loans: Total outstanding performing loans stood at FCFP 4.16 billion as of December 31, 2013, down 4.4% over the year.
  • Money Supply: The money supply decreased by 15.9% year-on-year due to significant investments outside the issuing area.
  • Net External Position: The net external position of credit institutions is largely in surplus, with limited investment.

Banking Data

Here are some key banking data for Wallis and Futuna Islands:

  • Total Financial Assets: Total financial assets: FCFP 1.806 billion (2013) and FCFP 2.109 billion (households).
  • Share of Operating Loans: Share of operating loans: 4.7% (2013).
  • Share of Consumer Loans: Share of consumer loans: 81.7% (2013).

Business Indicators

Here are some key business indicators for Wallis and Futuna Islands:

  • Financial Assets: Financial assets: FCFP 4,430 million (2007) and FCFP 5,189 million (2013).
  • Performing Outstanding Loans: Performing outstanding loans: FCFP 1,318 million (2007) and FCFP 1,846 million (2013).

Monetary and Financial Indicators

Here are some key monetary and financial indicators for Wallis and Futuna Islands:

  • Money Supply: Money supply: FCFP 6.252 billion (2007) and FCFP 7,347 billion (2013).
  • Net External Banking Position: Net external banking position: FCFP 2,996 billion (2007) and FCFP 2,628 billion (2013).

Employment in the Construction Industry

Here is a breakdown of employment in the construction industry:

  • Earthwork: 0.5%
  • Construction or Civil Engineering: 9.0%
  • Installation Works: 1.6%
  • Finishing Works: 3.8%

Overall, the economy of Wallis and Futuna Islands remains fragile due to the lack of property financing mechanisms in place since 2004. The construction industry continues to be a significant sector, but household demand is low. The financial system is relatively small, with only one retail bank operating on the archipelago.