The French Polynesian government has outlined its 2012 budget with a warning that all indicators are on red.
It says over the past seven years the gross domestic product per inhabitant has dropped by ten percent and in the short term, the situation is unlikely to improve.
The outline of the 1.5 billion US dollar budget forecasts a drop of revenue of nearly 9 percent over this year.
The government is considering imposing new import taxes and for the first time levy an income tax.
The government says just about all sectors of the economy are in crisis, with the exception of tourism whose long decline has been followed by a 10 percent increase in visitor numbers.