Niue

Niue (nē`ā), coral island (2004 pop. 1,761), c.100 sq mi (260 sq km), South Pacific, freely associated with New Zealand. Alofi is the capital. The inhabitants are mainly Protestant Polynesians. Niue, once known as Savage Island, has fertile soil and exports coconut milk, copra, honey, and fruit. Fishing and tourism are also important to the economy. The island, which is heavily dependent on aid from New Zealand, has an autonomous internal government. Declining population threatens Niue's economic health and the survival of its language; Polynesians of Niuean descent in New Zealand outnumber Niueans ten to one. A cyclone devastated the island in Jan., 2004. In 2006, Australia, New Zealand, and Niue established a trust fund provide long-term revenues for the island's economic development.