Editing Economy of Vanuatu

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{{Infobox economy
| country = Vanuatu
| image = Port Vila market.jpg
| image_size = 300px
| caption = A market in [[Port Vila]].
| currency = [[Vanuatu vatu]]
| fixed exchange = 
| year = 
| organs = 
| group = [[Developing country|Developing/Emerging]]
| gdp = {{plainlist|
* {{decrease}} $0.888 billion (nominal, 2021 est.)<ref name="cia">{{cite web|url=https://www.cia.gov/the-world-factbook/countries/vanuatu/|title=Vanuatu - The World Factbook|publisher=[[Central Intelligence Agency]]|website=CIA World Factbook|access-date=2 December 2023|archive-date=9 January 2021|archive-url=https://web.archive.org/web/20210109132322/https://www.cia.gov/the-world-factbook/countries/vanuatu|url-status=dead}}</ref>
* {{decrease}} $0.888 billion ([[Purchasing power parity|PPP]], 2021 est.)<ref name="cia"/>
}}
| gdp rank = 
| growth = {{plainlist|
*3.5% (2016) 4.4% (2017)
*3.2% (2018e) 3.8% (2019e)<ref name="IMFWEOVU">{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/02/weodata/weorept.aspx?pr.x=29&pr.y=15&sy=2016&ey=2021&scsm=1&ssd=1&sort=country&ds=.&br=1&c=846&s=NGDP_RPCH%2CNGDPD%2CPPPGDP%2CNGDPDPC%2CPPPPC%2CPCPIPCH&grp=0&a= |title=World Economic Outlook Database, October 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=21 October 2019}}</ref>}}
| per capita = {{plainlist|
*{{increase}} $3,255 (nominal, 2018 est.)<ref name="IMFWEOVU"/>
*{{increase}} $2,863 ([[Purchasing power parity|PPP]], 2018 est.)<ref name="IMFWEOVU"/>}}
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| inflation = 2.863% (2018 est.)<ref name="IMFWEOVU"/>
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| edbr = 83rd (2017)<ref>{{cite web|url=http://www.doingbusiness.org/data/exploreeconomies/vanuatu |title=Ease of Doing Business in Vanuatu |publisher=Doingbusiness.org |access-date=2017-01-23 }}</ref>
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| cianame = vanuatu
| spelling = 
| usebelowbox = yes
| presentUS$asdefault = yes
}}
[[Vanuatu]]'s [[economics|economy]] is primarily [[agriculture|agricultur]]al; 80% of the population is engaged in agricultural activities that range from [[subsistence agriculture|subsistence farming]] to [[smallholding|smallholder]] farming of [[coconut]]s and other [[cash crop]]s.<ref>[https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2993187 The Case for a Legislative Budget Office in Vanuatu]. Social Science Research Network (SSRN). Accessed 18 July 2017.</ref>

[[Copra]] is by far the most important cash crop (making up more than 35% of Vanuatu's exports), followed by [[timber]], [[beef]], and [[Cocoa bean|cocoa]]. [[Kava]] root extract exports also have become important.

== Economic sectors ==
===Financial sector===
In addition, the Vanuatu government has maintained the country's pre-independence status as a tax haven and international financial center. About 2,000 registered institutions offer a wide range of [[offshore bank]]ing, investment, legal, accounting, and insurance and [[trust company]] services. On the [[Tax Justice Network]]'s 2011 Financial Secrecy Index, Vanuatu received a "secrecy score" of 88/100, though its marginal market share placed it near the bottom of the weighted list.<ref>{{cite web|url=http://www.financialsecrecyindex.com/2011results.html |title=2011 Results - Financial Secrecy Index |access-date=2013-08-12 |url-status=dead |archive-url=https://web.archive.org/web/20130828000235/http://www.financialsecrecyindex.com/2011results.html |archive-date=2013-08-28 }}</ref> Vanuatu was one of three Pacific island nations (along with Nauru and Palau) which four major international banks placed a U.S. dollar transaction ban on in December 1999.<ref>{{Cite web |url=http://pidp.org/archive/1999/December/12-21-up1.htm |title=WORLD BANKS ISOLATE THREE PACIFIC COUNTRIES: NAURU, PALAU AND VANUATU ACCUSED OF MONEY LAUNDERING - December 21, 1999 |access-date=2013-09-22 |archive-url=https://web.archive.org/web/20130928211546/http://pidp.org/archive/1999/December/12-21-up1.htm |archive-date=2013-09-28 |url-status=dead }}</ref>
Vanuatu [[Immigrant investor programs|sells citizenship]] for about $150,000, and its passports allow visa-free travel throughout Europe. With demand from the Chinese market booming, passport sales may now account for more than 30% of the country's revenue.<ref>How selling citizenship is now big business. Sarah Treanor and Vivienne Nunis, business reporters, BBC News, Vanuatu. 10 October 2019. https://www.bbc.co.uk/news/business-49958628</ref> 
Vanuatu maintains an international shipping register in [[New York City]].{{cn|date=August 2020}}

===Fishing industry===
There is substantial fishing activity, although this industry does not bring in much foreign exchange. 
Vanuatu claims an exclusive economic zone of {{convert|680000|km2}} and possesses [[Sustainable fisheries|marine resource]]s.{{cn|date=August 2020}} Some ni-Vanuatu are involved in [[fishing]], along with foreign fleets.<ref>{{cite magazine|last1=Leeman|first1=Bernard|title=Long-distance learning: building a university on a South Pacific island|url=https://www.timeshighereducation.com/features/long-distance-learning-building-a-university-on-a-south-pacific-island|magazine=Times Higher Education|date=July 27, 2017}}</ref>

===Mining industry===
In contrast, mining activity is unsubstantial.{{Cn|date=October 2024}}

===Agricultural sector===
Exports include [[copra]], [[kava]], beef, cocoa and timber, and imports include machinery and equipment, foodstuffs and fuels.{{cn|date=August 2020}} [[Copra]], [[Cocoa bean|cocoa]], [[kava]] and [[beef]] account for more than 60% of Vanuatu's total exports by value and agriculture accounts for 20% of [[Gross domestic product|GDP]].{{cn|date=August 2020}}

Vanuatu produced in 2018:

* 374 thousand tons of [[coconut]];
* 53 thousand tons of [[root]] and [[tubers]];
* 16 thousand tons of [[banana]];
* 13 thousand tons of [[vegetable]];

In addition to smaller productions of other agricultural products, like [[peanut]] (2.6 thousand tons) and [[Cocoa bean|cocoa]] (1.8 thousand tons).<ref> [http://www.fao.org/faostat/en/#data/QC/ Vanuatu production in 2018, by FAO] </ref>

===Tourism sector===
[[Tourism]] is Vanuatu's fastest-growing sector, having comprised 40% of GDP in 2000.<ref>{{Cite web |title=Vanuatu (12/03) |url=https://2009-2017.state.gov/outofdate/bgn/vanuatu/31412.htm |access-date=2025-05-03 |website=U.S. Department of State}}</ref> Industry's portion of GDP declined from 15% to 10% between 1990 and 2008. Government consumption accounted for about 27% of GDP.<ref>{{Cite web |title=Vanuatu (12/03) |url=https://2009-2017.state.gov/outofdate/bgn/vanuatu/31412.htm |access-date=2025-05-03 |website=U.S. Department of State}}</ref>

Vanuatu has commodities, mostly agricultural, produced for [[export]]. In 2000, imports exceeded exports by a ratio of nearly 4 to 1. This was offset by high services income from tourism, which kept the current account balance fairly even. After a downturn in 2001 and 2002 due to a decrease in tourism funding,{{Clarify||does this mean tourism dropped? Or does it mean that the government allocated less funding to tourism?|date=May 2010}} the economy was expected to grow by 3.9%, increasing to 4.3% in 2007.{{Citation needed|date=May 2010}}

===Exports===
[[Luganville]], the second largest city, is a hub for exports with 64.3% of domestic exports leaving it compared to 35.7% for the capital of [[Port Vila]], whereas imports show the opposite trend with 86.9% entering through the capital and 13.1% through Luganville.<ref>[http://vanuatudaily.com/news/currentweek.php?subaction=showfull&id=1162158242 Trade deficit widens, economy looks good] - Vanuatudaily.com{{dead link|date=September 2013}}</ref>

===Reform===

In 1997 the government, with the aid of the [[Asian Development Bank]], committed itself to a 3-year comprehensive reform program. During the first year of the program the government has adopted a [[value-added tax]], consolidated and reformed government-owned banks, and started a 10% downsizing in the public service.{{cn|date=August 2020}} The program was derailed when [[Barak Sope]] became prime minister. Under [[Prime Minister]] [[Edward Natapei]], reform programs were reintroduced.{{cn|date=August 2020}}

===Traditional economy===
The government declared 2007 to be "the Year of the Traditional Economy" ({{langx|bi|kastom ekonomi}}), encouraging the trade of sea shells and pig tusks and discouraging cash transfers. By the end of the year, they extended the experiment in to 2008.<ref>[https://web.archive.org/web/20071227055548/http://www.telegraph.co.uk/news/main.jhtml?xml=%2Fnews%2F2007%2F12%2F25%2Fwoz125.xml Vanuatu spurns cash for sea shells and pigs]- [[The Daily Telegraph|The Telegraph]], 2007-12-25</ref> The establishment of the [[Tangbunia Bank]], to deal in customary wealth, was linked to this initiative.<ref>[http://news.bbc.co.uk/2/hi/asia-pacific/6266274.stm "Paying in pig tusks in Vanuatu"], Andrew Harding, BBC, July 4, 2007</ref>

== Economic statistics ==
Vanuatu scored 32.06 (versus a worldwide score of 42.94, lower scores translating to higher risk) on the June 2013 Euromoney Country Risk rankings.<ref>{{cite web|title=Euromoney Country Risk|url=http://www.euromoneycountryrisk.com/|archive-url=https://web.archive.org/web/20110205065205/http://www.euromoneycountryrisk.com/|url-status=usurped|archive-date=February 5, 2011|publisher=Euromoney Institutional Investor PLC|access-date=21 September 2013}}</ref>

All "$" units are [[US Dollar]].

'''GDP:'''
[[purchasing power parity]] - $1.237 billion (2012 est.)

'''GDP - real growth rate:'''
2.6% (2012 [[Approximation|estimate]])

'''GDP - per capita:'''
purchasing power parity - ${{val|4900}} (2012 est.)

'''GDP - composition by sector:'''
<br>''agriculture:''
20.6%
<br>''industry:''
11.7%
<br>''services:''
67.6% (2012 est.)

'''Population below poverty line:'''
NA%

'''Household income or consumption by percentage share:'''
<br>''lowest 10%:''
NA%
<br>''highest 10%:''
NA%

'''Inflation rate (consumer prices):'''
2.8% (2012 est.)

'''Labor force:'''
{{val|115900}} (2007)

'''Labor force - by occupation:'''
[[agriculture]] 58%,
[[Industrial sector|industry]] 10%,
[[Tertiary sector of economic activity|services]] 32% (2010 est.)

'''Unemployment rate:'''
1.5% (2010)

'''Budget:'''
<br>''revenues:''
$188.2 million
<br>''expenditures:''
$207.4 million, including capital expenditures of $700 000 (2012 est.)

'''Industries:'''
food and fish freezing, [[wood processing]], meat canning

'''Industrial production growth rate:'''
12% (2011 est.)

'''Electricity - production:'''
52 GWh (2008)

'''Electricity - production by source:'''
<br>''fossil fuel:''
90%
<br>''hydro:''
0%
<br>''nuclear:''
0%
<br>''other:''
10% (2012)

'''Electricity - consumption:'''
40.22 GWh (2008)

'''Electricity - exports:'''
220 kWh (2008)

'''Electricity - imports:'''
0 kWh (2008)

'''Agriculture - products:'''
[[copra]], [[coconut]]s, [[Cocoa bean|cocoa]], [[coffee]], [[kava]], [[taro]], [[yam (vegetable)|yams]], [[fruit]]s, [[vegetable]]s, [[fish]], [[beef]]

'''Exports:'''
$280 million (f.o.b., 2012 est.)

'''Exports - commodities:'''
[[copra]], [[beef]], [[Cocoa bean|cocoa]], [[timber]], [[kava]], [[coffee]]

'''Exports - partners:'''
[[Thailand]] 57.3%, [[Japan]] 21.8% (2011)

'''Imports:'''
$242 million (f.o.b., 2012)

'''Imports - commodities:'''
machinery and equipment, foodstuffs, fuels

'''Imports - partners:'''
[[China]] 26.7%, [[Singapore]] 21.2%, [[Australia]] 13.6%, [[New Zealand]] 7.2%, [[Fiji]] 6.7%, Japan 5.4% (2011)

'''Debt - external:'''
$307.7 million (2011)

'''Economic aid - recipient:'''
$27.5 million (2002)

'''Currency:'''
1 vatu (VT), no subdivisions

'''Exchange rates:'''
vatu (VT) per US$1 – 94.03 (2012), 96.91 (2010), 111.79 (2004), 122.19 (2003), 139.2 (2002), 145.31 (2001), 129.76 (December 1999), 129.08 (1999), 127.52 (1998), 115.87 (1997), 111.72 (1996), 112.11 (1995)

'''Fiscal year:'''
calendar year

==See also==
*[[Fishing in Vanuatu]]

==References==
{{Reflist}}

{{Vanuatu topics}}
{{Oceania in topic|Economy of}}

{{DEFAULTSORT:Economy Of Vanuatu}}
[[Category:Economy of Vanuatu| ]]