Vanuatu Economy 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):
$341 million (2005)

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.)

Labor force:
76,410 (1999)

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

Unemployment rate:
1.7% (1999)

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.)

Budget:
revenues: $78.7 million
expenditures: $72.23 million (2005)

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:
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 - exports:
0 bbl/day (2004)

Oil - imports:
628.5 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)

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

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

Exports - partners:
Thailand 59.7%, India 16.7%, Japan 11.4% (2006)

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

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)

Economic aid - recipient:
$39.48 million (2005)

Reserves of foreign exchange and gold:
$40.54 million (2003)

Debt - external:
$81.2 million (2004)

Market value of publicly traded shares:
$NA

Currency (code):
vatu (VUV)

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