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Vanuatu: 2025 Article IV Consultation-Press Release; and Staff Report

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  • International Monetary Fund

Abstract

Vanuatu has faced a perfect storm of shocks. The national carrier, Air Vanuatu, went into liquidation in May 2024, the capital city experienced a major earthquake in December 2024, Economic Citizenship Program revenues remain at risk, and the export sector is grappling with an uncertain global environment. Following Parliament dissolution in November 2024, the government elected in January 2025 committed to strengthening political stability, rebuilding critical infrastructure, enhancing revenue collection, and improving public sector efficiency. Near-term challenges are paramount, as is setting the country on a path of sustainable and resilient policies over the medium-term. Modest growth is expected in 2025 while post-earthquake reconstruction may foster an improved outlook for 2026; risks are skewed downward. Structural vulnerabilities related to governance, corruption, and natural disasters persist.

Suggested Citation

  • International Monetary Fund, 2025. "Vanuatu: 2025 Article IV Consultation-Press Release; and Staff Report," IMF Staff Country Reports 2025/277, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2025/277
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