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

Author: International Monetary Fund. Asia and Pacific Dept

Volume/Issue: Volume 2024 Issue 278

Publication date: September 2024

ISBN: 9798400287589

$20.00

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Public Finance , Natural Disasters , control environment , article IV consultation mission , recapitalization plan , Vanuatu's authorities , internal audit function , Debt sustainability analysis , Debt sustainability , Pacific Islands , Global , Australia and New Zealand

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Peru

Nepal

Grenada

Republic of Congo : 2001 Article IV

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.