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Vanuatu Vanuatu

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Vanuatu

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EconomicPoliticalStructural

Vanuatu – Quick View
ECR score12.96 (Mar 2011)
ECR rank173 (Mar 2011)
Economic
GDP (2010)USD 0.60 billion
GNI per capita PPP (2010)USD 3,908
FDI inflow (Q3 2010)USD 5.44 million
Inflation (2010)3%
Central bank assets (Q3 2010)USD 185.60 million
Unemployment rate (2009)4.6%
Government deficit (Q3 2010)USD 3.31 million
Tax revenue (Q3 2010)USD 28.14 million
Political
Government typeParliamentary Republic
Recent political crisisNA
Economic freedom score112th
Freedom of information scoreNA
Corruption perception index73rd
Structural
Birth rate31.1 per '000
Population balanceUnder 14 – 31.1%
Population balanceOver 60 – 7.5%
Life expectancy yearsMale 68 years
Life expectancy yearsFemale 75 years
Mortality rate14 per '000
Literacy rate84.8%
Internet access7.8%

[Top] Economic Overview

Vanuatu's economy is primarily dependent on agriculture. 80% of Vanuatu's population are engaged in agriculture and tourism. Cocoa, coffee, copra and beef are Vanuatu's main exports. The main export partners are Thailand, Malaysia and Japan.

Gross domestic product

According to IMF estimates, Vanuatu’s GDP in 2010 was VUV 60.426 billion  compared to VUV 58.666 billion in 2009. The compounded rate was 9.74% between 2000 and 2009.


Vanuatu's GDP growth rate devlined continuously from 7.19% in 2006 to 3.60% in 2009. In 2010, the growth rate was 3%.

Vanuatu GDP and GDP growth

(Source: IMF)

Gross national income per capita, PPP

The national GNI per capita PPP in 2010 was USD 3,908 compared to USD 3,231 in 2005.

Vanuatu GNI per capita, PPP

(Source: UNDP)

Tax rates

In 2010, individual income tax and corporate tax rates in Vanuatu were 0% and VAT was 12.5%.

(Source: taxrate.cc)

Inflation rate


Inflation between 2006 and 2008 showed upward movement i.e. it increased from 2.1% to 4.8% and then fell to 3% in 2010.

Vanuatu Inflation rate

(Source: ilo.org, page: 53)

FDI inflows


FDI inflows in Q3 2010 amounted to VUV 551 million compared to VUV 986 million in the corresponding period in 2009.

Vanuatu FDI inflow

 

(Source: rbv.gov.vu)

Banking sector assets

The table below displays the assets of the Central Bank of Vanuatu

Currency unit: Vanuatu Vatu (VUV)


Assets of Central Bank of Vanuatu (VUV million)

 

Q3 2010

Q3 2009

Foreign exchange

14,686.1

12,387.7

SDR holdings

243.6

3,057.6

RTP with IMF

382.2

434.2

Claims on government

1,417.9

619.9

Other assets

2,037.1

2,094.6

Total assets

18,766.9

18,594.0

(Source: rbv.gov.vu)

[Top] Financial Indicators & Government Financial

Consumer price index


The CPI in Vanuatu has grown steadily over the past decade. In 2010, CPI in Vanuatu was 134.67 compared to 129.87 in 2009.

Vanuatu CPI

Base: Year 2000 = 100

(Source: IMF)

Interest rates

The average weighted interest rate on loans and deposits are as follows:

 

Year

Average rates for fixed deposits

(%)

Average rates for bank deposits

(%)

Average interest rates on loans

(%)

2005

4.85

2.25

11.37

2006

4.60

1.89

11.30

2007

4.29

1.98

10.31

2008

5.29

2.69

10.33

2009

6.17

3.19

10.92

2010 (Q3)

5.60

3.08

10.83

(Source: rbv.gov.vu)

Money supply (currency in circulation)

According to the Central Bank of Vanuatu, the money supply (M1) in 2010 (Q3) was VUV 20,012.0 million and (M2) was VUV 59,872.60 million respectively.

 

Vanuatu Money supply

(Source: rbv.gov.vu)

Government expenditure

In Q3 2010, government expenditure was VUV 4458.0 million compared to VUV 4,334.3 million in Q3 2009.

Government Expenditure (VUV million)

 

Q3 - 2010

Q3 - 2009

Recurrent Expenditure

3,233.5

3,375.4

Development Expenditure

1,224.4

958.9

TOTAL

4,458.0

4,334.3

(Source: rbv.gov.vu)

 

Official exchange rate

VUV per dollar rate declined continuously between 2001 and 2009. In 2010 (Q3) the exchange rate increased marginally by 0.14% i.e. it increased to 97.75 per USD compared to 97.61 per USD the previous year.

 

Vanuatu Exchange rate

(Source: National statistics of Vanuatu, rbv.gov.vu,UN)

 

Government finances

Fiscal balance

The fiscal balance was in deficit of VUV 335 million in 2010 (Q3).

 

Vanuatu Fiscal balance

 

(Source: rbv.gov.vu)

Total revenue

Total revenue in Q3 2010 was VUV 4123.0 million. In 2009, total revenue was VUV 16,824.5 million compared to VUV 16,623.8 million.

 

Vanuatu Total revenue

 

(Source: rbv.gov.vu)

Tax revenue

Tax revenue was  VUV 2845.8 million in Q3 2010.

 

Vanuatu Tax revenue

 

(Source: rbv.gov.vu)

Total grants

In Q3 2010, total grants amounted to VUV 952.2 million.

 

Vanuatu Total grants

 

(Source: rbv.gov.vu)

Current account balance

The current account had a deficit of VUV 1,468 million in Q3 2010.

 

Vanuatu Current account balance

 

(Source: rbv.gov.vu)

Balance of payments


Balance of payments (VUV million)

 

Q3 2010

2009

Current account

-1,468

-3,970

Capital account

180

2,836

Financial account

-4,864

-621

Net errors & omissions

323

1,447


(Source: rbv.gov.vu, rbv.gov.vu, rbi.org)

[Top] Labour Force and Employment Overview

Labour force


Vanuatu’s total labour force in 2008 was 119,216.3 compared to 115,669.3 in 2007.

Vanuatu Labour force

(Source: World Bank)

In 2009, the labour force participation rate for women was 61.4% and 80.4% for men.

(Source:vnso.gov.vu)

Unemployment rate

The total unemployment rate in 2009 was 4.6%.

(Source:vnso.gov.vu)

Minimum wage

In Vanuatu, the minimum wage was approximately VUV 26,000 per month.

(Source: minimum-wage.org)

Level of unionisation

The main trade union is the Vanuatu Council of Trade Unions (VCTU).

(Source: ICFTU)

[Top] Political Stability

The republic of Vanuatu is a democratic country, with a unicameral framework of parliament comnsisting of 52 members. General elections are held after every 4 years

The president serves for a five year term and is elected by secret ballot by the members of the Electoral College. The Electoral College consists of all the MPs (52) plus the president of the six provincial councils.

HE Iolu Johnson Abil Kaniapnin is the current president and the prime minister of Vanuatu is Edward Natapei.

(Source: vanuatu.travel, fco.gov.uk, dfat.gov.au)

Regulatory environment in Vanuatu


The Government in Vanuatu is based on on a parliamentary democracy, where the head of the state is a chosen representative of the people and is bound to govern by constitutional law.

Vanuatu Economic Freedom Index

(Source: heritage.org)

Vanuatu’s economic freedom score was 56.7, making its economy the 112th freest in the 2011 index of economic freedom. Vanuatu ranks 20th out of 41 regional countries in the Asia–Pacific region. Vanuatu’s overall score is below the world average.

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Vanuatu ranked 73rd on CPI in 2010 with a score of 3.6, indicating the corruption levels across the country was moderate.  

(Source:transperancy.org)

Freedom of information

Media in Vanuatu is operated by a single TV channel. This channel was established with the help of Radio France Overseas (RFO) and is broadcasted in French and English.

Newspapers

  • Vanuatu Weekly
  • Vanuatu Daily Post
  • L'Hebdo Du Vanuatu
  • Port Vila Presse
  • Ni-Vanuatu
  • Nasara

(Source: BBC)

Judicial system

The judiciary in Vanuatu consists of :

  • Island Courts
  • Magistrates' Court
  • Supreme Court
  • Court of Appeal

The chief justice of Supreme Court is appointed by the president and the leader of the opposition after consulting with the prime minister. The president also appoints three other justices after consulting the Judicial Services Commission.

The Court of Appeal is the highest appellate court consisting of two or more judges from the Supreme Court. The Court of Appeal's decisions are final. The Court of Appeal frequently includes senior judges from other common law countries in its region.

(Source: paclii.org)

[Top] Demographic Overview

The total population of Vanuatu in 2010 was 245,036, increasing by 2.5% over the previous year.

(Source: spc.int :Population data)

Vanuatu Population by gender


The average median age in 2010 was 20.6 years and the crude birth rate (per thousand) was 31.1.

In mid-2010, Vanuatu’s total population was 51% male and 49% female.

(Source: spc.int :Population data)

The mortality rate of infants (per thousand live births) was 21 in 2009. In 2011, the mortality rate (per thousand live births) was 5.3.

The average life expectancy in Vanuatu for men was 69.6 years and 72.7 years for women in 2009.

(Source: spc.int :Population data)

The population below 14 years of age accounted for 31.1% of the population, the population between 15 to 59 years made up 61.4% and the population above the age of 60 made up 7.5% of the total population in 2009.

Vanuatu Population by age

(Source: spc.int :Population data)

The international migrant stock mid 2010 was 800 people. This was approximately 0.3% of the total population.

(Source: UN)

The urban population in Vanuatu grew at an annual rate of 3.6%. The rural population grew at a slower rate of 1.9% per year in the same period.

(Source: spc.int :Population data)

Ethnic groups in Vanuatu are:

  • ni-Vanuatu
  • European
  • other Pacific Islanders
  • Asian

(Source: State.gov)

[Top] Soft Infrastructure

Literacy rate

Vanuatu's literacy rate in 2009 was 64%.

(Source: spainexchange.com)

Education                  

The education system in Vanuatu was established by colonial governments. Educationin Vanuatu is provided in two languages i.e. English and French. Vanuatu spends approximately one fourth of total expenditure on the education system.

The education system in Vanuatu consists of:

 

Schooling

No. of years

Age Group (Years)

Primary school

6

1 – 3

Secondary school

4

7 – 10

Senior Secondary school

3

11 – 13

(Source: michaeldanielle.org, spainexchange.com, Kiwanis.org.nz)

Health

The healthcare system in Vanuatu is managed by the “Ministry of Health”. The healthcare services are not well developed and is inaccessible to most people due to lack of basic infrastructure, shortage of well trained and qualified medical personnel and because 80% of the population live in isolated rural areas across the country and therefore have limited access to healthcare facilities.

The ministry of health introduced the ‘Master Health Services Plan 2004-2009’ with the aim to improve the quality of general health standards and accessibility to healthcare services for all citizens. This policy aims to prioritize and improve healthcare facility standards and make better use of healthcare resources between 2010-2016.

In 2008, national expenditure on healthcare services was VUV 2,297 million (USD 22.7 million), accounting for approx. 4.1% of GDP. Total spending on health was financed by public sources with 79.2% and 20.8% came from private funds.

In 2009, there were five main hospitals in each province in Vanuatu and 32 health centres, 89 dispensaries and 181 aid posts.

(Source: wpro.who.int, globalsurance, uq.edu.au)

[Top] Hard Infrastructure

Roadways

Vanuatu has a total of 1,070 km of roads, of which 23.9% are paved.

(Source: estandardsforum)

Ports

There are only two ports in Vanuatu i.e. Port of Santo and Port of Port Vila.

Port of Port Vila is the biggest town and the capital of the Republic of Vanuatu. This is most important port in Vanuatu and is the center of trade. Over one-third of exports and almost 90% of imports pass through this port.

(Source: worldport.com)     

Airport

Some of the main airports in Vanuatu are as follows:

Town

Airport name

Runway length (ft.)

Aniwa

Aniwa

3,085

Bauerfield

Port Vila

8,530

Emae

Emae

3,280

Pekoa

Espiritu Santo

6,562

Quine Hill

Quine Hill

3,346

Ipota

Ipota

3,050

Longana

Longana

2,329

Lonorore

Lonorore

2,953

Maewo

Maewo

2,789

Mota Lava

Mota Lava

2,950

Norsup

Norsup

3,116

Sola

Sola

2,296

South West Bay

South West Bay

2,887

(Source: worldportcode.com)

Telecommunication network

The number of fixed telephone lines in Vanuatu increased from 6,800 in 2004 to 7,200 in 2009 registering a CAGR of 1.3%. The use of fixed telephone lines increased from 3.21 per 100 people in 2004 to 3.01 per 100 people in 2009.

(Source: ITU)

The number of mobile phone subscriptions rose from 10,500 in 2004 to 126,500 in 2009 registering a CAGR of 64.5%. The ratio of mobile phone subscriptions to fixed telephone lines was 17.5:1, indicating the that the use of mobile phones in Vanuatu is low compared to the use of fixed telephone lines.

(Source: ITU)

In 2009, there were 17,000 people i.e. 7.8% of the total population.


(Source:internetworldstats)

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