Economic Recovery Roadmap
The Cook Islands experienced one of the largest economic contractions in the world as a result of the pandemic. The Economic Recovery Roadmap (ERR) is the government’s main vehicle to drive the Cook Islands’ economic recovery from COVID-19 over the next few years. The overall objective of the ERR is to grow the Cook Islands’ GDP to pre-COVID levels (around $550 million), and towards the path we would have been on pre-COVID by 2025, while keeping within our fiscal responsibility rules. The icons below represent each of the main ERR workstreams.
Each of these areas work alongside the Economic Development Strategy 2030 released in January 2021 and include actions outlined in the strategy.
The managing the burden of public debt workstream is now complete, and subject to ongoing monitoring. The rest of the workstreams are in the implementation phase. MFEM will provide periodic updates on these workstreams, including seeking feedback on some of the proposed changes over the next couple of years.
For any queries regarding the Economic Recovery Roadmap, contact the MFEM Economic Planning Division on 29511 or email mfem.economics@cookislands.gov.ck.
Key Documents
The Economic Recovery Roadmap (ERR) is the government’s main vehicle to drive the Cook Islands’ economic recovery over the next few years. The objective of the ERR is to grow the Cook Islands’ GDP to pre-COVID levels (around $550 million), and towards the path we would have been on pre-COVID by 2025, while keeping within our fiscal responsibility rules. The ERR uses the Cook Islands Economic Development Strategy 2030 (EDS) as a foundation. ERR total 2021/22 spend was $42.41 million. The focus of the ERR in 2021/22 was continuing business support measures introduced under the ERP, as the border closures and subsequent restrictions delayed visitors returning to the islands. From August 2021 to April 2022, the Wage Subsidy supported 455 businesses and at least 3,178 employees, Business Grants supported 460 businesses, and Sole Trader Grants supported 174 sole traders.
Other highlights from 2021/22 include:
• $0.16 million of Isolation Support Payments provided between April and June 2022;
• delivery of an external report on the drivers of the cost of borrowing in the Cook Islands;
• Medium-term Debt Strategy finalised;
• engaged the Technical Advisors leading the e-commerce assessment and strategy;
• procured and implemented departure cards;
• progressed actions to facilitate migrant worker transfers;
• Ministry of Foreign Affairs and Immigration approved 230 work permit applications; and
• received draft ADB diagnostic on Cook Islands foreign investment policy and operation.
This report provides an assessment against the ERR outcome and output indicators for the 2021/22 fiscal year, to align with annual Budget reporting. However, some indicators are reported by calendar year. For this ERR monitoring report, each indicator is either reported against the 2021 calendar year, or the 2021/22 fiscal year.
Isolation Income Support
With the arrival of COVID-19 to the Cook Islands, and with it the need for our people to quarantine or to isolate in order to protect others, Government will provide financial support to those who cannot work. Similar to the Wage Subsidy and Sole Trader Grants, this support will be made available to people working in the private sector through their employer, and paid at the rate of 8 days at the minimum wage. There is one level of payment for full-time workers, and one for part-time, just as there is for the Wage Subsidy, and for workers who have both a full-time job and a part-time job, the income support may be claimed for both jobs up to a maximum of one claim of each rate.
Note: This support will only be available for as long as Te Marae Ora issues COVID-19 quarantine and isolation orders.
See Fact Sheet for further information:
Business Support Measures
Applications for final Wage Subsidy and Sole Trader Cash Grants closed on 31 May 2022. Factsheets with further information on each of the funding initiatives are below:
For any queries regarding Wage Subsidy or Sole Trader Applications, please contact the Revenue Management Division on 29365 (Mon - Fri from 1pm - 4pm) or email tax.info@cookislands.gov.ck.
Or for more information on the reinstated support measures, contact the MFEM Economic Planning Division on Phone: +(682) 29511 or email mfem.economics@cookislands.gov.ck.