Our authorities in Vanuatu appreciate the open and constructive engagement with the mission team during the 2021 Article IV virtual consultations. At this very difficult time for Vanuatu the advice of the Fund is needed more than ever. The authorities attach significant value to the high-quality policy advice and assistance received through their Fund membership. The authorities also broadly concur with staff’s assessment, analysis, and tailored policy recommendations.
1. Vanuatu graduated in 2020 from the United Nation’s list of least developed countries, but its development needs remain high.1 Consisting of 83 islands with a population of about three hundred thousand, Vanuatu’s GDP per capita remains below that of most of its peers in the Pacific. Accelerating economic development in an archipelago that is far removed from the closest continent will require infrastructure investment in various areas, including transportation, energy, and information and communications technology. While the tourism sector remains integral to Vanuatu’s economy, further economic diversification is needed to enhance sustainable and inclusive growth and resilience.