Country explorer: Vanuatu

EXPERIMENTAL
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Overview

Vanuatu is a volcanic, lower-middle-income island nation in the Pacific with a very small population. Its economy has been volatile in recent decades, and is based on agriculture, tourism and fishing.

Vanuatu is embracing sustainable tourism to protect its unique natural environment.

Economy

Vanuatu has demonstrated consistent economic progression with an increasing GDP per capita, managed to keep its unemployment rates relatively low compared to regional peers, and maintained moderate inflation rates, reflecting its resilience and steady growth amidst global economic fluctuations.

Demographics

Vanuatu has experienced steady population growth coupled with a high, albeit declining, fertility rate and modest improvements in life expectancy, reflecting broader demographic trends similar to those in other lower-middle-income countries.

Basic needs

Vanuatu has experienced a marked decline in access to clean fuels for cooking, contrasting with its significant progress in expanding access to electricity, a trend that aligns with broader regional improvements yet highlights unique challenges in meeting basic needs compared to its Pacific peers.

Human development

Vanuatu has made progressive strides in human development, marked by gradual improvements in the Human Development Index, reductions in child mortality, and advancements in literacy and education, paralleling its Pacific peers while contending with distinct challenges inherent to developing island nations.

Environment & energy

Vanuatu has distinguished itself from its Pacific peers by sharply contrasting environmental experiences, such as achieving remarkable forest expansion, harnessing a diversified mix of renewable energy sources including solar and bioenergy, facing significant fluctuations in CO₂ emissions due to unique land-use changes, and maintaining high renewable freshwater resources per capita in a context of global water scarcity.

Technology & innovation

Vanuatu has experienced notable advancements in technology and innovation, with significant increases in internet usage, mobile phone subscriptions, and scientific publications, demonstrating a trajectory of digital and research development akin to its Pacific neighbors.

Culture & society

Vanuatu has modestly decreased its age dependency ratio, reflecting a potential shift towards a younger, possibly more economically productive population, while maintaining a relatively stable share of foreign-born residents, akin to trends observed in other Pacific Island nations but contrasted by a higher dependency ratio indicative of its distinctive demographic challenges.

Governance

Vanuatu has shown remarkable improvement in governance, as evidenced by its steadily rising rule of law index and significant adherence to political civil liberties, setting a positive example of progress among lower-middle-income countries.

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