25 Jun 2009

New Caledonia economy gets positive 2008 report card

1:41 pm on 25 June 2009

A report on New Caledonia's economic performance last year says activity was sustained by domestic demand and a banking system that allowed the economy to grow.

The report was issued by the IEOM institute which is responsible for issuing the territory's money.

It says the only weakness was the nickel industry which suffered a massive blow as from January to December the nickel price dropped about two thirds .

The report says as a result nickel production has dropped to a level last seen in 1994.

It also noted that inflation reached 3.7 percent which was the highest in ten years.