Nauru is one of the world’s smallest island states, with an economy historically dependent on phosphate mining and, more recently, on regional processing arrangements and external assistance. The depletion of phosphate reserves has constrained long-term economic prospects, prompting efforts to stabilise public finances and explore alternative revenue sources. Development priorities include renewable energy expansion, water security, health system strengthening and environmental rehabilitation of mined land. Limited economic diversification, high import dependency and exposure to climate risks remain significant structural challenges.

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