In May 2011, the IMF country report assessment of the economy of Kiribati is that “After two years of contraction, the economy recovered in the second half of 2010 and inflation pressure dissipated. It is estimated to have grown by 1.75% for the year. Despite a weather-related drop in copra production, private sector activity appears to have picked up, especially in retail. Tourist arrivals rebounded by 20% compared to 2009, although from a very low base. Despite the rise in world food and fuel prices, inflation has bounced from 2008 crisis-highs into negative territory, reflecting the strong appreciation of the Australian dollar, which is used as the domestic currency, and a decline in the world price of rice. Credit growth in the overall economy declined in 2009 as economic activity stalled. But it started to pick up in the second half of 2010 as the recovery gained traction.”
Transportation:
There are 670 km of highways in Kiribati (1996 est.) of which 27 km are paved in South Tarawa (2001). The longest stretch of road travels from South Tarawa to North Tarawa.
Ports and harbours include Banaba, Betio, English Harbor, and Kanton. There is a small network of canals, totaling 5 km, in the Line Islands. The Merchant marine includes the ships of the Kiribati JMR Group that operates the Coral Sea Shipping Line, which has three ships: Coral Sea number 1, Coral Sea number 2 and Coral Sea number 3. One merchant ship connects, from time to time, the Line Islands (Kiritimati, Fanning and Washington) and makes stops en route at the Phoenix Islands.
2 small airplanes fly out of the Gilbert Islands, except for Banaba. Beginning in January 2009, Kiribati has two domestic airlines: Air Kiribati and Coral Sun Airways. Both airlines are based in Tarawa’s Bonriki International Airport and serve destinations across the Gilbert Islands only. Neither the Phoenix nor Line Islands are served by the domestic carriers. Fiji’s national carrier Fiji Airways provides an international service from Fiji’s main airport, Nadi International Airport to Cassidy Airport as well as to Bonriki Airport. Fiji Airways currently flies a twice weekly flight from Nadi International Airport to Bonriki, Kiribati.
As of 2010, there are 23 airports in Kiribati, of which 4 have paved runways, the only international ones being Bonriki International Airport and Cassidy International Airport. Bonriki International Airport is currently undergoing an upgrade program to bring airport security up to IATA standards – this includes the construction of a fence around the entire perimeter.
Flag of Kiribati:
The flag of Kiribati is red in the upper half with a gold frigatebird flying over a gold rising sun, and the lower half is blue with three horizontal wavy white stripes to represent the ocean and the three archipelagos (Gilbert, Phoenix and Line Islands). The 17 rays of the sun represent the 16 Gilbert Islands and Banaba (former Ocean Island).
