Vanuatu Economy Profile 2003

Economy - overview

The economy is based primarily on subsistence or small-scale agriculture, which provides a living for 65% of the population. Fishing, offshore financial services, and tourism, with about 50,000 visitors in 1997, are other mainstays of the economy. Mineral deposits are negligible; the country has no known petroleum deposits. A small light industry sector caters to the local market. Tax revenues come mainly from import duties. 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. A severe earthquake in November 1999 followed by a tsunami, caused extensive damage to the northern island of Pentecote and left thousands homeless. Another powerful earthquake in January 2002 caused extensive damage in the capital, Port-Vila, and surrounding areas, and also was followed by a tsunami. GDP growth rose less than 3% on average in the 1990s. In response to foreign concerns, the government has promised to tighten regulation of its offshore financial center. In mid-2002 the government stepped up efforts to boost tourism. Australia and New Zealand are the main suppliers of foreign aid.

GDP (purchasing power parity)

purchasing power parity - $563 million (2002 est.)

GDP - real growth rate

-0.3% (2002 est.)

GDP - per capita (PPP)

purchasing power parity - $2,900 (2002 est.)

GDP - composition by sector

agriculture: 26%
industry: 12%
services: 62% (2000 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

3.2% (2001 est.)

Labor force

NA

Labor force - by occupation

agriculture 65%, services 30%, industry 5% (2000 est.)

Unemployment rate

NA%

Budget

revenues: $94.4 million
expenditures: $99.8 million, including capital expenditures of $30.4 million (1996 est.)

Industries

food and fish freezing, wood processing, meat canning

Industrial production growth rate

1% (1997 est.)

Electricity - production

43.46 million kWh (2001)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

40.42 million kWh (2001)

Electricity - exports

0 kWh (2001)

Electricity - imports

0 kWh (2001)

Oil - production

0 bbl/day (2001 est.)

Oil - consumption

600 bbl/day (2001 est.)

Oil - imports

NA (2001)

Oil - exports

NA (2001)

Agriculture - products

copra, coconuts, cocoa, coffee, taro, yams, coconuts, fruits, vegetables; fish, beef

Exports

$22 million f.o.b. (2001)

Exports - commodities

copra, beef, cocoa, timber, kava, coffee

Exports - partners

Indonesia 34.8%, Japan 14.2%, Thailand 11.0%, Germany 3.0% (2001)

Imports

$93 million c.i.f. (2001)

Imports - commodities

machinery and equipment, foodstuffs, fuels

Imports - partners

Japan 26.1%, Australia 16.9%, Singapore 14.5%, Germany 11.0% (2001)

Debt - external

$68.6 million (2000 est.)

Economic aid - recipient

$45.8 million (1995)

Currency

vatu (VUV)

Currency (code)

VUV

Exchange rates

vatu per US dollar - 139.198 (2002), 145.312 (2001), 137.643 (2000), 129.075 (1999), 127.517 (1998)

Fiscal year

calendar year