Agriculture is the backbone of the Vanuatu economy. By the estimation of World Bank in 2006 Vanuatu is placed under the category of lower middle-income group of East Asia and Pacific region. Around 80% of the population is employed in agriculture. Agriculture contributes around 20% to the GDP of Vanuatu.
The tourism sector is the most developed sector of Vanuatu contributing about 40% of the GDP followed by the industrial sector, which produces 15% of the GDP.
Agriculture And Vanuatu Economy
The most important cash crop of the region is copra. Apart from copra cocoa, kava, pepper, squash are also grown.
The export of these crops aid in earning a good amount of foreign exchange for the country.
Industry in Vanuatu
The industrial sector of Vanuatu is still developing and is trying to be self-sufficient. Only 5% of the work force is employed in the industrial sector. Mainly the by products o copra, coconut and cocoa are produced and exported that earn foreign exchange.
The tourism industry is growing in leaps and bounds.
Service Sector in Vanuatu
They practice a unique banking system that allures investors to invest in the bank. It is also known as the tax haven and acts as an important financial center.
Future Development Program
The government of Vanuatu has entered into a deal with the Asian Development Bank for a 3-year reform program. Only the first phase has been implemented by far. A value-added system has been introduced along with certain measures from the government�s end.
Last Updated on : 25th June 2013