IMF Staff Country Reports

Vanuatu: 2024 Article IV Consultation-Press Release and Staff Report

Publication Date:

September 3, 2024

Electronic Access:

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Summary:

As Vanuatu was recovering from the multiple natural disasters of 2023, the voluntary liquidation of Air Vanuatu in May 2024 created a major shock with significant effects on growth and business confidence. The negotiations about the future of the airline, along with developments linked to the Economic Citizenship Program (ECP) will have significant economic, social, fiscal, and financial integrity implications. Disruptions to connectivity, tourism, and services will likely affect economic activity in 2024: real GDP growth is expected to grow only by around 1 percent y/y, and the current account deficit will likely widen around 7½ percent of GDP, although there is significant uncertainty to forecasts. Ongoing vulnerabilities and exposure to other risks keep the balance of risks to the downside. Structural vulnerabilities to governance, corruption, and natural disasters remain.

Series:

Country Report No. 2024/278

Subject:

Climate change Debt sustainability Debt sustainability analysis Economic sectors Environment Expenditure External debt Financial institutions Natural disasters Nonperforming loans Public debt Tourism

Frequency:

regular