Economy of Vanuatu
An overview of key economic indicators. Select a category for detailed trends, charts, and insights.
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Growth & Output
Trade & Finance
Labor & Income
Economic Snapshot Overview
A summary of key economic indicators for Vanuatu
- The economic architecture of Vanuatu is substantial, anchored by a Gross Domestic Product (GDP) of approximately $1.13B2023. This places it as the 179th largest economy out of 191 countries measured, underscoring its significance on the world stage. On a per capita basis, GDP stands at $3.52K2023, while its GDP adjusted for Purchasing Power Parity (PPP) is estimated at $1.11B, offering a clearer picture of the population's domestic purchasing power. The economy is navigating a period of modest growth, recorded at 2.2%2023, though this rapid growth is shadowed by high inflation, with the Consumer Price Index (CPI) reaching 11.2%, suggesting the economy may be overheating.2023
- On the global stage, Vanuatu's trade and financial dynamics reveal a complex interplay of international and domestic factors. The nation's economic activity is heavily reliant on foreign goods, running a considerable trade deficit with imports at 55.5% of GDP and exports at 15.3%2022. The investment climate attracts significant Foreign Direct Investment (FDI), with inflows constituting 0.82% of the economy2023. This performance positions the country 130th globally out of 186 nations, confirming its status as a competitive destination for foreign capital. Furthermore, personal remittances from its diaspora are a vital component of the economy, amounting to a substantial $144.97M annually2023. Fiscal capacity is adequate, with tax collections representing 17.4% of GDP, supporting core state functions.2023
- The socio-economic landscape is characterized by a Gross National Income (GNI) per capita of $3,8202023, ranking the nation 125th out of 190. This figure provides a comprehensive measure of the average income per person, reflecting the nation's overall economic well-being. The labor market remains stable, with an unemployment rate of 5.1%.2024A key feature of the workforce is its concentration in the services sector, which accounts for 44.2% of total employment2023. Despite its economic standing, poverty remains a salient issue, with 15.9% of the population living below the national poverty line2019. The country achieves a relatively equitable distribution of income, reflected in a low Gini index of 32.3.2019
- In the environmental and energy sectors, the nation's policies and outcomes reflect its developmental priorities. Energy consumption per capita stands at 158.174 kg of oil equivalent2007, a metric that often correlates with industrial activity and living standards. A significant commitment to sustainability is evident, with renewable energy accounting for 25.0% of consumption2022. This commitment places it 99th among 190 countries, highlighting its relative progress in decarbonization. Total greenhouse gas emissions were last recorded at 670.2 tonnes of CO2 equivalent2023, a key factor in its national climate strategy and international obligations.
Key Economic Insights
Macroeconomic Health
Rampant inflation is the most urgent economic threat, eroding purchasing power, destabilizing markets, and complicating policy choices.
Trade & Investment Profile
The economy is largely insular and consumption-driven, relying heavily on imports and showing limited integration into global export markets.
Social Equity & Distribution
Ensuring equitable distribution of economic gains is fundamental for long-term social and political stability.
Energy & Sustainability
The transition to a sustainable energy framework is paramount for mitigating climate risk and securing future energy needs.
More About This Country
Neighbors & Regional Peers
Note: The information on this page has been compiled from authoritative sources. While every effort is made to ensure accuracy, please note that some figures may not be current or entirely precise.