Vanuatu’s public debt currently stands at 35.7% of Gross Domestic Product (GDP), with the Government saying the country’s debt remains manageable and financially sustainable.

Deputy Prime Minister and Minister of Finance Johnny Koanapo said the debt level is expected to fall further by the end of the year as the Government continues repaying its financial obligations.

“Our debt is well below 40 percent, and even if it reaches that level, it must be responsible debt used to fund infrastructure that grows the economy, creates more economic activity and expands our GDP. At this point, our debt remains at a manageable level, which means it is sustainable.”

Mr Koanapo said the Government’s revenue collection remains positive and is helping maintain the country’s financial position.

He added that Government expenditure declined during the first quarter of the year because of stricter financial management by the Ministry of Finance.

“Our first-quarter spending has reduced, which shows there is strict financial management. At the same time, we are paying our bills, managing our debt and ensuring Vanuatu is not in a debt distress situation.”

The Minister said the Government will continue to carefully manage spending while investing in infrastructure that supports long-term economic growth.