The economy operates on cash and subsidence farming. Copra and cocoa production are the main agricultural exports.
The main group of indigenous inhabitants of Rabaul are the tolai people. Other groups come from the surrounding areas of Baining, Sulka, Taulil and Pomio.
The German administration made a large contribution to the civil development of the town. One famous German individual was Queen Emma, who was a well known in the South Pacific. Her large coconut plantations and headquarters were situated at Kokopo.
The growth of the town continued under the Australian administration. The ongoing development of the economy, health, and education systems have enabled the population to thrive during post war times.
Through out its recent history, Rabaul has seen migration from other indigenous groups within PNG, and migration from other cultures such as the Germans, Chinese, Malay and Australians. Historically, the cultural diversity has contributed to a thriving and successful East New Britain Province.
Despite the challenges presented to Papua New Guinea post-independence, the East New Britain province continues to be one of the successful provinces geographically, economically and culturally.