VANUATU'S ECONOMY MAINTAINS STEADY AND POSITIVE GROWTH

This is because the Government continues to ensure its economic, financial and fiscal policies are well formulated and implemented including ongoing reform initiatives a key agenda targeting improved service delivery and business friendly environment, all of which are believed to have direct contribution to positive growth.

CURRENT STATUS AND OUTLOOK

Stable and Steady Growth
Vanuatu’s economy registered a real GDP growth of 4.4 per cent in 2017 driven by infrastructure related activities with a forecasted growth for 2019 of around 3.4 percent.

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Current Growth Driver
Our domestic economy has been driven mainly by the industrial sector for the past 3 years, overtaking the services sector which used to be the main growth driver.
Strong and Positive
Our performance will remain strong and positive over the medium to long term with growth driven by both the services and industry sectors.

IMPACT OF FDI (FORIEGN DIRECT INVESTMENT) ON VANUATU'S ECONOMY

Contribution to Vanuatu's growth by foreign direct investment (FDI) has been and remains significant. The Vanuatu Government does not have sufficient domestic savings to undertake its own investment in essential sectors of the economy. Therefore FDI is critical to fill in this gap.

To date FDI has contributed to one third (33 %) of the country's formal employment with the likely hood of this improving further very high. While the majority of this employed pool are located in Port Vila and Efate, there is notable number of FDI projects being shifted to provinces outside of Efate. This means employment numbers will also shift - which is in line to the Government's decentralization policy. For example in 2018, 6-7 % of approved FDI have chosen to locate in the SANMA Province and 1 percent in the province of TAFEA.

Employment for Women

It is encouraging to note that FDIs are not only for men in terms of employment opportunities. FDIs offer equal employment to both males and females.

Contribution to Growth

Over a certain number of years, the average FDI contribution to domestic GDP is between 6-8 %. Given the country's population and size of productivity output, a contribution of this magnitude is considered relatively satisfactory.

OUR EXPORT MARKETS

Vanuatu is an importing country with annual average imports comprising upto 65% of the country's GDP. This is already telling where investment opportunities lie in the country's economic sectors. Importing countries of Vanuatu 's domestic products have maintained good trading relationship. Key domestic products currently in for export markets include:
Copra & Coconut Meal
Coconut Oil
Beef
Sawn Timber
Vanuatu Coffee
Vanuatu Cocoa
Vanuatu Kava

GDP GROWTH (%)

The Vanuatu economy is maintaining strong growth

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