[4] With a capital value of about 2.5 times GDP, the Trust Fund provides an important cushion for Tuvalu's volatile income sources from fishing and royalties from the sale of the .tv domain.

[11] On 5 August 2012, the executive board of the International Monetary Fund (IMF) concluded that a slow recovery was underway in Tuvalu and that GDP grew in 2011 led by the private retail sector and education spending.

[15] Agriculture in Tuvalu is focused on coconut trees and growing pulaka in large pits of composted soil below the water table.

Subsistence farming of coconut palms to produce copra and fishing remain the primary economic activities, particularly off the capital island of Funafuti.

There is no apparent large income disparity among the residents, although virtually the only jobs in the islands that pay a steady wage or salary are with the government, which make up about two-thirds of those in formal employment.

Fishing licensing agreements with Taiwan, Japan, South Korea, New Zealand and the United States generated an income of A$9 million in 2009.

The International Monetary Fund 2014 Country Report described the effect of the GFC as reducing demand for the services of Tuvaluan seafarers.

[35] From 1996 to 2002, Tuvalu was one of the best performing Pacific Island economies and achieved an average real gross domestic product (GDP) growth rate of 5.6% per annum.

Since 2002 economic growth has slowed as Tuvalu was exposed to rapid rises in world prices of fuel and food with the level of inflation peaking at 10% in 2008,[10] and falling to 0% in November 2010.

[42] Te Kakeega was the statement of the national strategy for the sustainable development of Tuvalu, with economic and social goals intended to be achieved in the period 2005 to 2015.

[44] After consultations on each islands the National Summit on Sustainable Development (NSSD), was held at the Tausoalima Falekaupule in Funafuti from 28 June to 9 July 2004.

[45] The meeting resulted in the Malefatuga Declaration,[46] which is the foundation of Te Kakeega II - National Strategy for Sustainable Development-2005-2015,[44] which “contained all the known aid projects, programmes, development initiatives and ideas adopted by the donors and the two successive Tuvalu governments (2004-2006 and 2006 to present)”.

[50] Symbolically, Te Kete has biblical significance for Tuvaluan Christian traditions by referencing the basket or the cradle that saved the life of Moses.

[4] With a capital value of about 3.5 times GDP, the TTF provides an important cushion for Tuvalu's volatile income sources from fishing and royalties from the sale of the dot-TV domain.

The operation of the Trust Fund through two accounts assists in stabilising the long-term financial situation of the Government of Tuvalu as well as addressing short-term budget needs.

[57] The island councils – composed of traditional leaders – are responsible for managing their own finances from a budget allocated from the Tuvaluan government from the Falekaupule Trust Fund.

[4] With a capital value of about 2.5 times GDP, the Trust Fund provides an important cushion for Tuvalu's volatile income sources from fishing and royalties from the sale of the .tv domain.

[62][63] In 2015 Tuvalu has refused to sell fishing days to certain nations and fleets that have blocked Tuvaluan initiatives to develop and sustain their own fishery.

[64] In 2016 Dr Puakena Boreham, the Minister of Natural Resources, drew attention to Article 30 of the WCPF Convention, which describes the collective obligation of members to consider the disproportionate burden that management measures might place on small-island developing states.

"[72] The IMF 2021 Country Report concluded that swift implementation of COVID-19 containment measures and COVID-related fiscal spending financed by buoyant fishing revenues and donor grants have allowed Tuvalu to avoid a recession in 2020.

[73] Tuvalu participates in the Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries, which was established in October 1997 under the auspices of the World Trade Organisation.

Prime Minister Enele Sopoaga said that this deferral was necessary to maintain access by Tuvalu to the funds provided by the United Nations's National Adaptation Programme of Action (NAPA), as "Once Tuvalu graduates to a developed country, it will not be considered for funding assistance for climate change adaptation programmes like NAPA, which only goes to LDCs".

To improve aid effectiveness, the government of Tuvalu, ADB, AusAID, and NZAID signed the Development Partners Declaration (DPD) in 2009.

The DPD is designed to improve aid effectiveness, both in the implementation of specific projects and in assisting the Tuvaluan government achieve performance benchmark indicators.

[80] Tuvalu participates in the Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries, which was established in October 1997 under the auspices of the World Trade Organisation.

Prime Minister Enele Sopoaga said that this deferral was necessary to maintain access by Tuvalu to the funds provided by the United Nations's National Adaptation Programme of Action (NAPA), as “Once Tuvalu graduates to a developed country, it will not be considered for funding assistance for climate change adaptation programmes like NAPA, which only goes to LDCs”.

Prime minister, Enele Sopoaga wants the United Nations to reconsider its criteria for graduation from LDC status as not enough weight is given to the environmental plight of small island states like Tuvalu.

[83][84] The South Pacific Applied Geoscience Commission (SOPAC) suggests that, while Tuvalu is vulnerable to climate change, environmental problems such as population growth and poor coastal management also affect sustainable development.

Each of the named groups are responsible for implementing Tuvalu's NAPA, the main plan to adapt to the adverse effects of human use and climate change.

Further projects that are part of TCAP are capital works on the outer islands of Nanumea and Nanumaga aimed at reducing exposure to coastal damage resulting from storms.