Vanuatu: 2024 Article IV Consultation-Press Release and Staff Report
IMF Staff Country Reports, September 3, 2024
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- Canonical URL
- Vanuatu: 2024 Article IV Consultation-Press Release and Staff Report
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Bibliographic details
- Published: September 3, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400287589.002
Immediate shocks and macroeconomic outlook
- 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.
- There is a strong need to address immediate risks to growth and stability, and then redouble efforts to rebuild buffers and tackle structural issues with policy reforms.
Fiscal position and policy priorities
- Fiscal challenges abound and call for urgent and comprehensive action.
- In the near term, targeted and strategic support is needed to help stabilize the economy, while ensuring fiscal accounts remain under control.
- Reprioritization of investment needs and integration to the medium-term fiscal strategy are recommended as part of structural action.
Monetary policy and external sector management
- Monetary policy is appropriately accommodative but monetary financing needs to be reduced and eventually stopped.
- The currency basket needs close monitoring.
Structural issues and labor market
- Structural issues remain ever important, and action is needed such as reprioritization of investment needs and integration to the medium-term fiscal strategy.
- An increase in efforts to address labor shortages and skills drain is needed.
Thematic focus and keywords
- Subject: Debt sustainability, Debt sustainability analysis, External debt, Public debt
- Keywords include: article IV consultation mission, Australia and New Zealand, control environment, Debt sustainability, Debt sustainability analysis, Global, internal audit function, Pacific Islands, recapitalization plan, Vanuatu's authorities
Source: Vanuatu: 2024 Article IV Consultation-Press Release and Staff Report
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- 1vutea2024001-print-pdf