Vanuatu: 2013 Article IV Consultation

IMF Staff Country Reports, June 21, 2013

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Vanuatu has a comparatively favorable economy and cautious macroeconomic policies that have helped maintain stability and confidence.
Financial sector policies have been appropriately cautious.
The economy must maintain low debt in the longer term, but funding is needed for infrastructure, maintenance, and social services.
New revenue measures have to be identified to finance these needs while maintaining growth potential, especially in the tourism and agricultural sectors.
The financing options for new large infrastructure projects have to be assessed.

Cautious macroeconomic policies and financial sector policies have supported stability and confidence.
Maintaining low public debt over the longer term is necessary.
There is a need to identify new revenue measures to fund infrastructure, maintenance, and social services.
New revenue should be structured to strengthen the state while preserving growth potential in tourism and agriculture.
Financing options for large infrastructure projects require assessment.

Identify and implement new revenue measures to fund infrastructure, maintenance, and social services.
Ensure revenue measures strengthen the state without undermining growth potential in the tourism and agricultural sectors.
Assess financing options for new large infrastructure projects to balance development needs with debt sustainability.
Maintain cautious macroeconomic and financial sector policies to preserve stability and confidence.

Maintain low debt in the longer term while meeting funding needs for infrastructure, maintenance, and social services.
Evaluate public investment and public-private partnerships (PPP) as part of financing strategies.

Tourism: Preserve growth potential while mobilizing revenue for public needs.
Agriculture: Support growth potential alongside revenue and investment measures.
Financial sector: Continue appropriately cautious policies to sustain stability and confidence.