Vanuatu: Economy#
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 nearly 197,000 visitors in 2008, are other mainstays of the economy. 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.
Economic Facts#
| GDP (purchasing power parity) | $723 million (2016 est.) $695.2 million (2015 est.) $700.8 million (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $773 million (2015 est.) |
| GDP - real growth rate | 4% (2016 est.) -0.8% (2015 est.) 2.3% (2014 est.) |
| GDP - per capita (PPP) | $2,600 (2016 est.) $2,600 (2015 est.) $2,700 (2014 est.) note: data are in 2016 dollars |
| GDP - composition, by end use | household consumption: 67% government consumption: 17.6% investment in fixed capital: 28.6% investment in inventories: 0% exports of goods and services: 37.3% imports of goods and services: -50.5% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 26% industry: 9% services: 65% (2016 est.) |
| 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% (2016 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 | NA% |
| Household income or consumption by percentage share | lowest 10%: NA% highest 10%: NA% |
| Budget | revenues: $175.9 million expenditures: $201.3 million (2016 est.) |
| Taxes and other revenues | 22.8% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -3.3% of GDP (2016 est.) |
| Fiscal year | calendar year |
| Inflation rate (consumer prices) | 2.7% (2016 est.) 2.4% (2015 est.) |
| Central bank discount rate | 20% (31 December 2010) 6% (31 December 2009) |
| Commercial bank prime lending rate | 3.3% (31 December 2016 est.) 3.63% (31 December 2015 est.) |
| Stock of narrow money | $375.9 million (31 December 2016 est.) $320.9 million (31 December 2015 est.) |
| Stock of broad money | $544.9 million (31 December 2014 est.) $552.6 million (31 December 2013 est.) |
| Stock of domestic credit | $506.7 million (31 December 2016 est.) $477 million (31 December 2015 est.) |
| Market value of publicly traded shares | $NA |
| Current account balance | -$129 million (2016 est.) -$82 million (2015 est.) |
| Exports | $58.4 million (2016 est.) $45.6 million (2015 est.) |
| Exports - commodities | copra, beef, cocoa, timber, kava, coffee |
| Exports - partners | Japan 35.1%, Turkey 10.5%, Thailand 8.7%, China 8.2%, Venezuela 5.9%, UK 5.6% (2015) |
| Imports | $366.8 million (2016 est.) $323.2 million (2015 est.) |
| Imports - commodities | machinery and equipment, foodstuffs, fuels |
| Imports - partners | China 16.7%, Australia 14.6%, Japan 13.9%, Singapore 10%, Fiji 9.3%, NZ 8.3%, New Caledonia 5.2% (2015) |
| Reserves of foreign exchange and gold | $251.9 million (31 December 2016 est.) $269.2 million (31 December 2015 est.) |
| Debt - external | $208.1 million (31 December 2016 est.) $190.9 million (31 December 2015 est.) |
| Stock of direct foreign investment - at home | $618.1 million (31 December 2016 est.) $563.1 million (31 December 2015 est.) |
| Stock of direct foreign investment - abroad | $22.7 million (31 December 2016 est.) $22.7 million (31 December 2015 est.) |
| Exchange rates | vatu (VUV) per US dollar - 110.3 (2016 est.) 108.99 (2015 est.) 108.99 (2014 est.) 97.07 (2013 est.) 92.64 (2012 est.) |