Réunion's economy has been based almost entirely on sugar for more than a century. Cane is grown on most cultivable land, though vanilla bean and some fruits and vegetables, tobacco, and geraniums (for perfume) are also produced. About a dozen big estates with milling facilities produce the bulk of the cane crop. Sugar represents about 75 percent of Réunion's exports, and such sugar by-products as rum and molasses account for much of the rest. Much of Réunion's trade is with France. Unemployment continues to be a problem. A few paved roads connect the main towns on the island. Le Port can handle large ships through artificial port facilities. An international airport is located near Saint-Denis.

The economy has traditionally been based on agriculture. Sugarcane has been the primary crop for more than a century, and in some years it accounts for 85% of exports. The government has been pushing the development of a tourist industry to relieve high unemployment, which amounts to more than 40% of the labor force. The gap in Reunion between the well-off and the poor is extraordinary and accounts for the persistent social tensions. The white and Indian communities are substantially better off than other segments of the population, often approaching European standards, whereas minority groups suffer the poverty and unemployment typical of the poorer nations of the African continent. The outbreak of severe rioting in February 1991 illustrates the seriousness of socioeconomic tensions. The economic well-being of Reunion depends heavily on continued financial assistance from France.