Vanuatu, with a population of 326,740, is ranked 166th in the world, just behind Iceland. Located in the South Pacific Ocean, it covers an area of 12,190 square kilometers, ranking 149th globally, just below Montenegro.
Vanuatu’s economy in 2022 is positioned at a GDP of $1,055,811,723.75, ranking at 179 globally. It follows behind Turks and Caicos Islands, with a GDP of $1,138,808,881.10. The GDP per capita for Vanuatu in 2022 is $3,231.35, placing it at 131 in the world.
It lags behind Sri Lanka, whose GDP per capita is $3,354.38. Vanuatu’s economic position reflects its status as a developing nation with potential for growth and development in the coming years.
What are the economic activities of Vanuatu?
- Primary activities: 27.3% of GDP.
- Secondary activities: 11.8% of GDP.
- Tertiary activities: 60.8% of GDP.
Primary Sector of Vanuatu
Vanuatu’s primary sector, centered on agriculture, thrives due to its tropical climate and rich natural resources. With 15.34% of the land dedicated to agriculture, the country produces a diverse range of products including coconuts, root vegetables, bananas, and pork. Despite contributing 27.3% to the GDP, agriculture plays a crucial role in the economy.
The top ten agricultural products by tonnage showcase the importance of crops and animal products, such as vegetables, fruits, beef, and tropical fruits, in sustaining the country’s agricultural sector.
Vanuatu’s diverse geology contributes to rich natural resources. Abundant manganese deposits, extensive hardwood forests, and thriving fish stocks drive the economy. These resources support industries like mining, logging, and fishing, providing essential income and employment opportunities for the local population.
Secondary Sector of Vanuatu
What is the secondary sector or what are secondary activities?
The secondary sector comprises industries that produce finished goods from raw materials. In Vanuatu, main industrial products include food and fish freezing, wood processing, and meat canning. These activities add value to raw materials, creating products for domestic consumption or export.
In 2023, Vanuatu’s manufactures exports accounted for a small percentage of the total exports, indicating their limited significance in the country’s economy.
Tertiary sector of Vanuatu
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Vanuatu encompasses a wide range of services provided by individuals to enhance productivity and meet needs. Key activities include healthcare, education, banking, tourism, transportation, telecommunications, and security services. These sectors play a crucial role in supporting the country’s economy and improving the quality of life for its citizens.
Among these, Vanuatu’s tourism industry is pivotal to its economy, accounting for a significant portion of its GDP. With an impressive 256,000 annual arrivals, the sector contributes substantially to the nation’s prosperity. Popular destinations like the breathtaking Tanna Island and the vibrant Port Vila captivate visitors, showcasing Vanuatu’s natural beauty and rich culture.
Another example of tertiary economic activity is the mobile cellular sector, with approximately 256,000 subscriptions, supporting technological growth. With 78 subscriptions per 100 inhabitants, it enhances connectivity, fostering innovation and digital services.
Biggest company in Vanuatu
Which is the biggest company in Vanuatu? The largest company is the Joint Stock Commercial Bank for Foreign Trade of Vietnam, commonly known as Vietcombank. Founded in 1963, it operates in the banking industry within the tertiary sector, with a market value of approximately 16.94 billion USD.
International Trade of Vanuatu
Import Activities of Vanuatu
Vanuatu’s import activities are crucial, accounting for 53.69% of GDP, reflecting heavy reliance on imported goods for economic growth.
Vanuatu’s import activities are significant, with China being the largest partner at 24%. Imports include refined petroleum, ships, plastic products, poultry, and broadcasting equipment from Australia, Malaysia, New Zealand, and Fiji.
Exports Activities of Vanuatu
Vanuatu’s total exports in 2023 amounted to $156,448,979.71. With exports contributing to 14.82% of its GDP, the country’s export activities hold medium importance in driving economic growth and sustainability.
Vanuatu primarily exports fish, perfume plants, copra, shellfish, and cocoa beans. Its key export partners are Thailand (42%), Japan (27%), South Korea (7%), the Philippines (6%), and China (5%).
Vanuatu economy challenges in 2024
Vanuatu faces challenges in 2024 with a struggling economy heavily reliant on agriculture and tourism. The country is still recovering from the impacts of the pandemic and Tropical Cyclone Harold. Inflation is a significant issue, and road infrastructure aid from Australia is crucial for development.
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