Until recently, the economy of Rakahanga was dominated by the coconut palm.
Prior to European economic involvement, coconut palms were valuable property, to be passed down to families along with land.
Every part of the palm had a role, as a food, building material, clothing material, fuel, or for making baskets and netting.

Visiting trading ships brought the first need for tradeable goods.
 Pearl shell and copra (dried coconut meat, a source of coconut oil) could be exchanged for manufactured goods which were largely sourced from New Zealand.
  By the 1890s European traders were living on Rakahanga, buying copra and selling general merchandise.
By 1904 the Island Council had ownership interests in at least one trading store.
In the 1930s the major store belonged to the New Zealand trading firm of A. B. Donald, which also owned schooners to transport the copra.
This store operated until the 1970s.
In the second half of the twentieth century the international copra market declined and the price dropped to almost a quarter, making the Rakahangan industry unviable.
 In 2001 90% of those employed were in the public sector.

Dried fish are a potential export.
Rito hats, mats and baskets, traditionally woven by women from the ribs of coconut leaves, remain in demand in Rarotongan markets because of their high quality.
These are made using the same techniques which in 1874 were described as producing "highly prized" mats "in the manufacture of which they are more skilful than any other people of the Pacific".

In the 1950s and again in the 1990s attempts were made to establish a pearl industry .
However, the lagoon is shallow with poor water flow.
Some Rakahangans benefit from the black pearl industry in Manihiki through part-ownership or employment.

There is no tourist accommodation on Rakahanga although homestays can be arranged.
Access to the atoll remains very difficult.
AirRaro offers fortnightly (usually) flights between Rarotonga to Manihiki.
Both the Manihiki and Rakahanga communities operate outboard motor boats between the atolls, a trip which takes up to 3 hours depending on conditions.
The alternative is a 3-6 day voyage on one of the trading ships which run on sparse schedules from Rarotonga or sometimes Tahiti.
An airstrip built on Rakahanga's western coast in 1982 was damaged beyond repair by waves in the next cyclone
Until recently, the economy of Rakahanga was dominated by the coconut palm. Prior to European economic involvement, coconut palms were valuable property, to be passed down to families along with land. Every part of the palm had a role, as a food, building material, clothing material, fuel, or for making baskets and netting.
Visiting trading ships brought the first need for tradeable goods.  Pearl shell and copra (dried coconut meat, a source of coconut oil) could be exchanged for manufactured goods which were largely sourced from New Zealand.   By the 1890s European traders were living on Rakahanga, buying copra and selling general merchandise. By 1904 the Island Council had ownership interests in at least one trading store. In the 1930s the major store belonged to the New Zealand trading firm of A. B. Donald, which also owned schooners to transport the copra. This store operated until the 1970s. In the second half of the twentieth century the international copra market declined and the price dropped to almost a quarter, making the Rakahangan industry unviable.  In 2001 90% of those employed were in the public sector.
Dried fish are a potential export. Rito hats, mats and baskets, traditionally woven by women from the ribs of coconut leaves, remain in demand in Rarotongan markets because of their high quality. These are made using the same techniques which in 1874 were described as producing "highly prized" mats "in the manufacture of which they are more skilful than any other people of the Pacific". 
In the 1950s and again in the 1990s attempts were made to establish a pearl industry . However, the lagoon is shallow with poor water flow. Some Rakahangans benefit from the black pearl industry in Manihiki through part-ownership or employment.
There is no tourist accommodation on Rakahanga although homestays can be arranged. Access to the atoll remains very difficult. AirRaro offers fortnightly (usually) flights between Rarotonga to Manihiki. Both the Manihiki and Rakahanga communities operate outboard motor boats between the atolls, a trip which takes up to 3 hours depending on conditions. The alternative is a 3-6 day voyage on one of the trading ships which run on sparse schedules from Rarotonga or sometimes Tahiti. An airstrip built on Rakahanga's western coast in 1982 was damaged beyond repair by waves in the next cyclone
Rakahanga