Vanuatu Experiencing Positive Economic Growth

Economy expected to pick up even more in 2017

By Glenda Willie

PORT VILA, Vanuatu (Vanuatu Daily Post, July 19, 2016) – The economic growth for Vanuatu is expected to pick up to 3.5% in 2016.

This, according to Asian Development Bank’s (ADB) July 2016 Issue of the Pacific Economic Monitor, is higher than initially expected, and it will continue to accelerate to 3.8% in 2017.

ADB confirmed the boost in the economy since the commencement of major infrastructure and Cyclone Pam reconstruction projects.

Vanuatu is among few other countries in the Pacific expecting to record an increased in their economic growth in 2016.

The Pacific Economic Monitor which was launched last Thursday informed that most Pacific economies are unlikely to be significantly affected by heightened uncertainty in the global economy.

“Despite significant risks to the global economic outlook, prospects for some of the smaller Pacific economies have improved slightly, reflecting stronger than expected performance in tourism, fisheries, and construction,” said Xianbin Yao, Director General of ADB’s Pacific Department.

“This positive news is balanced against continued challenges in some of the region’s larger resource-export dependent economies due to low commodity prices prevailing internationally.”

The Monitor, ADB’s flagship economic publication on the Pacific, projects that the economies in the region will grow by an average of 3.9% in 2016—about the same as projected earlier this year in the Asian Development Outlook (ADO) 2016.

This, however, is significantly lower than the 7.0% growth recorded last year, mainly due to fiscal pressures faced by PNG and the impact of the Cyclone Winston on Fiji—the Pacific’s two largest economies.

The Pacific Economic Monitor is a bi-annual review of economic developments in ADB’s 14 developing member countries in the Pacific, and includes policy briefs on relevant topics. In combination with the ADO series, ADB provides quarterly reports on economic trends and policy developments in the Pacific.

Vanuatu Daily Post
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