Unique economies that work surprisingly well
When discussing economies, we often think about GDPs, output, and currency value, among other factors. But some economies thrive outside the box. There are seven economies in particular that are able to generate their wealth in curious ways.
This list includes nations with unique economic drivers such as internet domain names, milk prices, and happiness. Indeed, these seven nations definitely have the world's strangest economies. Does your country make the list? Click on to find out.
All amounts are in US dollars.
Tuvalu
The Pacific island of Tuvalu makes the list of the world’s strangest economies. The tiny island of just 11,000 people is making millions in the most unique manner possible.
Leasing agreement
Beginning in the 1990s, Tuvalu’s government entered an official deal with a California firm for a US$50-million leasing agreement for the use of the nation’s suffix, raking in US$2 million a year until 2011.
New agreement with GoDaddy
After 2011, Tuvalu upped its prices, bringing in about US$5 million annually. The rise of streaming services further increased the value of the suffix. A more recent deal with the domain website GoDaddy also increased profit margins.
Deal brings in a sixth of GDP
Tuvalu’s government signed an agreement with GoDaddy that brings in US$10 million on an annual basis. What Tuvalu manages to make with this agreement is equivalent to about a sixth of the nation’s GDP.
Climate crisis
The government was also able to fund the Future Now Project. This initiative attempts to combat the crises that the island faces under the threat of climate change, as the island is considered one of the fastest-sinking nations in the world.
URL suffix
The Caribbean nation is making US$3 million a month by licensing out its suffix. The amount of money Anguilla is making from its suffix is reportedly one-third of the government’s monthly budget.
Ethiopia's trade
In Djibouti’s case, it’s actually another nation’s trade that allows Djibouti’s economy to perform so well. About 95% of Ethiopia’s trade goes through Djibouti.
Ethiopia's exports
Ethiopia’s primary export is coffee. It is also a nation that relies heavily on imports. Therefore, Djibouti, manages the comings and goings of Ethiopia’s maritime trade.
Pending agreement between Ethiopia and Somaliland
However, it hasn't always been smooth sailing at Djibouti's ports. A pending agreement between Ethiopia and Somaliland could see Djibouti replaced as Ethiopia’s primary trade facilitator.
Guyana
The next country on the list is the world’s fastest-growing economy. The South American nation of Guyana is experiencing rapid growth due to its oil reserves, which have been exploited by the American oil giant ExxonMobil.
Local investment
The money the nation has earned from oil has gone directly towards its development, investing the earnings into improving the nation’s infrastructure, healthcare and education systems, and other projects that are of public interest.
The world's largest sovereign wealth fund
The state’s oil profits have gone toward building the world’s largest sovereign wealth fund, which is currently valued at a whopping US$1.7 trillion. Ironically, the nation has also embraced the other side of oil dependency. Pictured is Nicolai Tangen, chief executive officer of Norges Bank Investment Management.
Ireland
In 2016, Ireland experienced an unexpected boom. Its economy rose by nearly 35% just that year alone. What suddenly occurred to improve its economic performance? Like a certain Bible story, it all started with an apple.
Production
Pharmaceutical, technology, and electronics companies, among others, produce many of their products in Ireland. Although taxes are low for corporations, there are so many multinationals in Ireland, that the nation consistently reports budgetary surpluses.
Vulnerability of the milk economy
Of course, depending so much on one product, like any nation, makes the economy vulnerable. When milk demand is low, the nation’s exports fall and put farmers in sudden precarity.
