Economy - overview:
This South Pacific island economy is based primarily on small-scale agriculture, which provides a living for about two thirds of the population. Fishing, offshore financial services, and tourism, with more than 330,000 visitors in 2017, are other mainstays of the economy. Tourism has struggled after Efate, the most populous and most popular island for tourists, was damaged by Tropical Cyclone Pam in 2015. Ongoing infrastructure difficulties at Port Vila’s Bauerfield Airport have caused air travel disruptions, further hampering tourism numbers. Australia and New Zealand are the main source of tourists and foreign aid. A small light industry sector caters to the local market. Tax revenues come mainly from import duties. Mineral deposits are negligible; the country has no known petroleum deposits.

Economic development is hindered by dependence on relatively few commodity exports, vulnerability to natural disasters, and long distances from main markets and between constituent islands. In response to foreign concerns, the government has promised to tighten regulation of its offshore financial center.

Since 2002, the government has stepped up efforts to boost tourism through improved air connections, resort development, and cruise ship facilities. Agriculture, especially livestock farming, is a second target for growth.

GDP (purchasing power parity):
$772 million (2017 est.)
$740.9 million (2016 est.)
$716.1 million (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 207
[see also: GDP country ranks ]

GDP (official exchange rate):
$870 million (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
4.2% (2017 est.)
3.5% (2016 est.)
0.2% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 73
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$2,700 (2017 est.)
$2,700 (2016 est.)
$2,700 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 196
[see also: GDP - per capita country ranks ]

GDP - composition, by end use:
household consumption: 59.9% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 17.4% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 28.7% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 42.5% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -48.5% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 27.3% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 11.8% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 60.8% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
copra, coconuts, cocoa, coffee, taro, yams, fruits, vegetables; beef; fish

Industries:
food and fish freezing, wood processing, meat canning

Industrial production growth rate:
4.5% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 68
[see also: Industrial production growth rate country ranks ]

Labor force:
115,900 (2007 est.)
country comparison to the world (CIA rank, may be based on non-current data): 182
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 65%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 5%
[see also: Labor force - by occupation - industry country ranks ]
services: 30% (2000 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
1.7% (1999 est.)
country comparison to the world (CIA rank, may be based on non-current data): 16
[see also: Unemployment rate country ranks ]

Population below poverty line:
NA
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: NA
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Budget:
revenues: 236.7 million (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 244.1 million (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
27.2% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 102
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-0.9% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 73
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
48.4% of GDP (2017 est.)
46.1% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 107
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
3.1% (2017 est.)
0.8% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 134
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
20% (31 December 2010)
6% (31 December 2009)
country comparison to the world (CIA rank, may be based on non-current data): 6
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
3.2% (31 December 2017 est.)
2.95% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 173
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$424.7 million (31 December 2017 est.)
$379.9 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 173
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$424.7 million (31 December 2017 est.)
$379.9 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 177
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$494 million (31 December 2017 est.)
$463.4 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 178
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
NA
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$13 million (2017 est.)
-$37 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 70
[see also: Current account balance country ranks ]

Exports:
$44.7 million (2017 est.)
$53.5 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 204
[see also: Exports country ranks ]

Exports - partners:
Philippines 23.9%, Australia 16.5%, US 10.4%, Japan 8.8%, Venezuela 8%, France 4.8%, Fiji 4.5%, Hong Kong 4.4% (2017)

Exports - commodities:
copra, beef (veal), cocoa, timber, kava, coffee, coconut oil, shell, cowhides, coconut meal, fish

Imports:
$273.7 million (2017 est.)
$308.5 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 207
[see also: Imports country ranks ]

Imports - commodities:
machinery and equipment, foodstuffs, fuels

Imports - partners:
Russia 35.2%, Australia 19.8%, NZ 9.8%, China 6.3%, Fiji 5.5% (2017)

Reserves of foreign exchange and gold:
$395.1 million (31 December 2017 est.)
$267.4 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 160
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$200.5 million (31 December 2017 est.)
$182.5 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 188
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$590.9 million (31 December 2017 est.)
$535.9 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 127
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$22.3 million (31 December 2017 est.)
$22.4 million (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 116
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
vatu (VUV) per US dollar -
109.7 (2017 est.)
112.28 (2016 est.)
108.48 (2015 est.)
108.99 (2014 est.)
97.07 (2013 est.)