Vanuatu Economy - 2005

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 about 50,000 visitors in 2004, 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. 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. 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 - $580 million (2003 est.)

GDP - real growth rate:
1.1% (2003 est.)

GDP - per capita:
purchasing power parity - $2,900 (2003 est.)

GDP - composition by sector:
agriculture: 26%
industry: 12%
services: 62% (2000 est.)

Labor force:
NA

Labor force - by occupation:
agriculture 65%, industry 5%, services 30% (2000 est.)

Unemployment rate:
NA%

Population below poverty line:
NA

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
3.1% (2003 est.)

Budget:
revenues: $52.6 million
expenditures: $54.3 million, including capital expenditures of $700,000 (2003 est.)

Agriculture - products:
copra, coconuts, cocoa, coffee, taro, yams, coconuts, fruits, vegetables; fish, beef

Industries:
food and fish freezing, wood processing, meat canning

Industrial production growth rate:
1% (1997 est.)

Electricity - production:
48.42 million kWh (2002)

Electricity - consumption:
45.03 million kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
600 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Exports:
$26.6 million f.o.b. (2003)

Exports - commodities:
copra, beef, cocoa, timber, kava, coffee

Exports - partners:
Thailand 46.3%, Malaysia 18.1%, Japan 7.4%, Belgium 5.3%, Indonesia 5.3% (2004)

Imports:
$138 million c.i.f. (2002)

Imports - commodities:
machinery and equipment, foodstuffs, fuels

Imports - partners:
Taiwan 34.6%, Australia 15.5%, Japan 10.7%, Singapore 8%, New Zealand 6%, Fiji 4.6% (2004)

Debt - external:
$83.7 million (2002)

Economic aid - recipient:
$27.5 million (2002)

Currency (code):
vatu (VUV)

Exchange rates:
vatu per US dollar - 111.79 (2004), 122.19 (2003), 139.2 (2002), 145.31 (2001), 137.64 (2000)