Vanuatu Economy Profile 2008

Economy - overview

This South Pacific island economy is based primarily on small-scale agriculture, which provides a living for 65% of the population. Fishing, offshore financial services, and tourism, with more than 60,000 visitors in 2005, 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. 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 through improved air connections, resort development, and cruise ship facilities. Agriculture, especially livestock farming, is a second target for growth. Australia and New Zealand are the main suppliers of tourists and foreign aid.

GDP (purchasing power parity)

$739 million (2006 est.)

GDP (official exchange rate)

$421 million (2007 est.)

GDP - real growth rate

6.8% (2005 est.)

GDP - per capita (PPP)

$2,900 (2003 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)

-1.6% (2005 est.)

Labor force

76,410 (1999)

Labor force - by occupation

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

Unemployment rate

1.7% (1999)

Budget

revenues: $78.7 million
expenditures: $72.23 million (2005 est.)

Industries

food and fish freezing, wood processing, meat canning

Industrial production growth rate

1% (1997 est.)

Electricity - production

41 million kWh (2005)

Electricity - consumption

38.13 million kWh (2005)

Electricity - exports

0 kWh (2005 est.)

Electricity - imports

0 kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

640 bbl/day (2005 est.)

Oil - imports

628.5 bbl/day (2004)

Oil - exports

0 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$28.35 million (2003)

Agriculture - products

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

Exports

$40 million f.o.b. (2006)

Exports - commodities

copra, beef, cocoa, timber, kava, coffee

Exports - partners

Thailand 59.6%, India 16.8%, Japan 11.5% (2006)

Imports

$156 million c.i.f. (2006)

Imports - commodities

machinery and equipment, foodstuffs, fuels

Imports - partners

Australia 20.6%, Japan 19.7%, Singapore 12.1%, NZ 8.8%, Fiji 7.7%, China 7.4%, New Caledonia 4.3% (2006)

Reserves of foreign exchange and gold

$40.54 million (2003)

Debt - external

$81.2 million (2004)

Market value of publicly traded shares

$NA

Economic aid - recipient

$39.48 million (2005)

Currency (code)

vatu (VUV)

Exchange rates

vatu per US dollar - NA (2007), 111.93 (2006), NA (2005), 111.79 (2004), 122.19 (2003)

Fiscal year

calendar year