Vanuatu Economy - 2021

GEOGRAPHICAL NAMES 

Economic 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.

Real GDP growth rate

4.2% (2017 est.)

3.5% (2016 est.)

0.2% (2015 est.)

Inflation rate (consumer prices)

3.1% (2017 est.)

0.8% (2016 est.)

Real GDP (purchasing power parity)

$945 million (2019 est.)

$915 million (2018 est.)

$889 million (2017 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$870 million (2017 est.)

Real GDP per capita

$3,153 (2019 est.)

$3,128 (2018 est.)

$3,117 (2017 est.)

note: data are in 2017 dollars

GDP - composition, by sector of origin

agriculture: 27.3% (2017 est.)

industry: 11.8% (2017 est.)

services: 60.8% (2017 est.)

GDP - composition, by end use

household consumption: 59.9% (2017 est.)

government consumption: 17.4% (2017 est.)

investment in fixed capital: 28.7% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 42.5% (2017 est.)

imports of goods and services: -48.5% (2017 est.)

Ease of Doing Business Index scores

Overall score: 61.1 (2020)

Starting a Business score: 81.5 (2020)

Trading score: 59.1 (2020)

Enforcement score: 49.3 (2020)

Agricultural products

coconuts, roots/tubers nes, bananas, vegetables, pork, fruit, milk, beef, groundnuts, cocoa

Industries

food and fish freezing, wood processing, meat canning

Industrial production growth rate

4.5% (2017 est.)

Labor force

115,900 (2007 est.)

Labor force - by occupation

agriculture: 65%

industry: 5%

services: 30% (2000 est.)

Unemployment rate

1.7% (1999 est.)

Population below poverty line

N/A

Gini Index coefficient - distribution of family income

37.6 (2010 est.)

Household income or consumption by percentage share

lowest 10%: NA

highest 10%: NA

Budget

revenues: 236.7 million (2017 est.)

expenditures: 244.1 million (2017 est.)

Taxes and other revenues

27.2% (of GDP) (2017 est.)

Budget surplus (+) or deficit (-)

-0.9% (of GDP) (2017 est.)

Public debt

48.4% of GDP (2017 est.)

46.1% of GDP (2016 est.)

Fiscal year

calendar year

Current account balance

-$13 million (2017 est.)

-$37 million (2016 est.)

Exports

$44.7 million (2017 est.)

$53.5 million (2016 est.)

Exports - partners

Japan 33%, Thailand 13%, Mauritania 13%, South Korea 11%, China 9%, Fiji 7% (2019)

Exports - commodities

fish and fish products, tug boats, perfume plants, mollusks, cocoa beans (2019)

Imports

$273.7 million (2017 est.)

$308.5 million (2016 est.)

Imports - partners

China 29%, Australia 18%, New Zealand 11%, Fiji 11%, Taiwan 5%, Thailand 5% (2019)

Imports - commodities

refined petroleum, fishing ships, delivery trucks, poultry meats, broadcasting equipment (2019)

Reserves of foreign exchange and gold

$395.1 million (31 December 2017 est.)

$267.4 million (31 December 2016 est.)

Debt - external

$200.5 million (31 December 2017 est.)

$182.5 million (31 December 2016 est.)

Exchange rates

vatu (VUV) per US dollar -

111.015 (2020 est.)

117.035 (2019 est.)

113.005 (2018 est.)

108.99 (2014 est.)

97.07 (2013 est.)

NOTE: The information regarding Vanuatu on this page is re-published from the 2021 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Vanuatu 2021 information contained here. All suggestions for corrections of any errors about Vanuatu 2021 should be addressed to the CIA or the source cited on each page.