The economy of Tuvalu suffers from its remoteness and lack of economies of scale. Virtually the only jobs in the islands that pay a steady wage or salary are with the government. Subsistence farming and fishing remain the primary economic activities, particularly off the capital island of Funafuti. There is no apparent large income disparity among the residents.
Funafuti is an atoll that forms the capital of the island nation of Tuvalu. Funafuti has an airstrip, hotel (Vaiaku Langi Hotel), and administrative buildings, as well as homes, constructed both in the traditional manner, out of palm fronds, and more recently out of cement blocks.
Funafuti has an overall cost of living index which equates it with middle cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups.
The latest cost of living rank for each of the 13 Basket Groups is now available.