The IEOM is a French economic institution that constantly analyses the economy of the various French territories. It has just published its latest analysis which concerns the second quarter of 2020. The economic situation is showing signs of improvement compared to the first quarter of 2020. Household consumption, the main pillar of the Territory’s economy where there are few companies, has recovered.
Thanks to public worksites
Prices, often high, have remained stable. The private economy presents a favourable situation. Imports of capital goods by companies are rising sharply, while the volume of credit is increasing. The building and public works sector is also recovering thanks to several public projects. Despite the Covid-19 crisis, which greatly restricts travel, the economy of the archipelago seems to be holding up well. This very small territory with only 2200 employees does not experience the wave of redundancies that can be seen in New Caledonia.
An aerial bubble between Wallis and Noumea
It should be pointed out that the only air link currently in operation is the one from Wallis to Noumea. The two French territories, 2000 kilometres apart, have created a bubble. Inhabitants of the two territories can therefore travel to the neighbouring territory without spending two weeks in quarantine.