Economy of Vanuatu

Copra is by far the most important cash crop (making up more than 35% of Vanuatu's exports), followed by timber, beef, and cocoa. Kava root extract exports also have become important.

Economic sectors

Financial sector

In addition, the Vanuatu government has maintained the country's pre-independence status as a tax haven and international financial center. About 2,000 registered institutions offer a wide range of offshore banking, investment, legal, accounting, and insurance and trust company services. On the Tax Justice Network's 2011 Financial Secrecy Index, Vanuatu received a "secrecy score" of 88/100, though its marginal market share placed it near the bottom of the weighted list. Vanuatu was one of three Pacific island nations (along with Nauru and Palau) which four major international banks placed a U.S. dollar transaction ban on in December 1999. Vanuatu sells citizenship for about $150,000, and its passports allow visa-free travel throughout Europe. With demand from the Chinese market booming, passport sales may now account for more than 30% of the country's revenue. Vanuatu maintains an international shipping register in New York City.

Fishing industry

There is substantial fishing activity, although this industry does not bring in much foreign exchange. Vanuatu claims an exclusive economic zone of 680,000 square kilometres (260,000 sq mi) and possesses marine resources. Some ni-Vanuatu are involved in fishing, along with foreign fleets.

Mining industry

In contrast, mining activity is unsubstantial.

Agricultural sector

Exports include copra, kava, beef, cocoa and timber, and imports include machinery and equipment, foodstuffs and fuels. Copra, cocoa, kava and beef account for more than 60% of Vanuatu's total exports by value and agriculture accounts for 20% of GDP.

Vanuatu produced in 2018:

• 374 thousand tons of coconut;
• 53 thousand tons of root and tubers;
• 16 thousand tons of banana;
• 13 thousand tons of vegetable;

In addition to smaller productions of other agricultural products, like peanut (2.6 thousand tons) and cocoa (1.8 thousand tons).

Tourism sector

Tourism is Vanuatu's fastest-growing sector, having comprised 40% of GDP in 2000. Industry's portion of GDP declined from 15% to 10% between 1990 and 2008. Government consumption accounted for about 27% of GDP.

Vanuatu has commodities, mostly agricultural, produced for export. In 2000, imports exceeded exports by a ratio of nearly 4 to 1. This was offset by high services income from tourism, which kept the current account balance fairly even. After a downturn in 2001 and 2002 due to a decrease in tourism funding, the economy was expected to grow by 3.9%, increasing to 4.3% in 2007.

Transport

Vanuatu's undeveloped road system, with fewer than 100 miles of paved roads, consists mostly of dirt tracks suitable only for four-wheel-drive vehicles. Every island has one or two short airstrips where Air Vanuatu’s Twin Otter planes land two or three times weekly. In addition, every island has a small port or wharf where small cargo ships and boats regularly dock.

After arrival on an island, transportation is usually via pickup truck, foot, or small boat. Bicycles are becoming popular in Vanuatu. Port Vila and Luganville have numerous taxis and mass-transit vans. There are no railways in Vanuatu, although there was a small rail line on Efate during the colonial era.

Vanuatu's main harbors are Forari, Port-Vila, Santo (Espiritu Santo).

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