Economy of Vanuatu

An overview of key economic indicators. Select a category for detailed trends, charts, and insights.

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 $1.13B
    2023
    . 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 $3.52K
    2023
    , 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 economy
    2023
    . 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 annually
    2023
    . 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 $3,820
    2023
    , 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%.
    2024
    A key feature of the workforce is its concentration in the services sector, which accounts for 44.2% of total employment
    2023
    . Despite its economic standing, poverty remains a salient issue, with 15.9% of the population living below the national poverty line
    2019
    . 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 equivalent
    2007
    , 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 consumption
    2022
    . 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 equivalent
    2023
    , 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

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.