Vanuatu: 2025 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, September 25, 2025
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- Vanuatu: 2025 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: September 25, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229026833.002
Major shocks and recent developments
- 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.
- The export sector is grappling with an uncertain global environment.
- Parliament was dissolved in November 2024; a government elected in January 2025 committed to:
- strengthening political stability,
- rebuilding critical infrastructure,
- enhancing revenue collection,
- improving public sector efficiency.
Macroeconomic outlook and risks
- Near-term challenges are paramount; modest growth is expected in 2025.
- Post-earthquake reconstruction may foster an improved outlook for 2026.
- Risks are skewed downward.
Structural vulnerabilities and constraints
- Persistent structural vulnerabilities related to governance, corruption, and natural disasters.
- Fiscal and external considerations highlighted by subject tags: Debt sustainability analysis, External debt, Public debt, Natural disasters, Environment.
Policy priorities and recommendations (as emphasized by the report)
- Strengthen political stability to support policy implementation.
- Prioritize rebuilding critical infrastructure to support recovery and growth.
- Enhance revenue collection to bolster fiscal buffers.
- Improve public sector efficiency to address governance and control environment weaknesses.
- Address risks to Economic Citizenship Program revenues and exposure from the national carrier liquidation.
Content in this bundle
- 1. Real Sector Developments