Why is international finance an important part of the Cook Islands economy?

International finance serves as a vital pillar of the Cook Islands' economy, functioning as the second-largest economic sector after tourism. The islands have established themselves as a major offshore tax haven, a strategy that attracts foreign capital and supports the nation's financial services industry.1

This economic model is supported by a government policy that encourages foreign investment and maintains moderate tax rates. By positioning itself as an international financial center, the Cook Islands generates significant economic activity that complements its reliance on the service sector and foreign aid.1