The Vanuatu Bureau of Statistics has released preliminary GDP figures for 2024, showing that the economy continued to grow but at a slower pace compared to the previous year.

According to the report, Vanuatu’s economy grew by 3.8 percent in 2024, down from 5.8 percent in 2023.

Nominal GDP reached VT 154.7 billion, and GDP per capita increased to VT 473,000, indicating a small improvement in living standards.

The report highlights that sectors such as construction and agriculture are driving economic activity, helping to offset weaker sectors like tourism and transport.

Large infrastructure projects and post-cyclone reconstruction efforts following the twin cyclones in 2023 boosted domestic demand and supported jobs and related industries.

Inflation slowed sharply in 2024 to 1.1 percent, compared with 11.2 percent in 2023, and in the second half of the year inflation turned negative.

The industry sector grew by 11 percent, with construction remaining the biggest contributor.

The services sector grew by 2.6 percent, supported by wholesale, retail, and communications.

However, tourism-related services remain weak due to the closure of Air Vanuatu and the December earthquake, which disrupted business in Port Vila.

The trade deficit widened to VT 35 billion, driven by strong import demand.

Overall, the report shows that Vanuatu’s economy is expanding, supported mainly by the construction and agriculture sectors, despite ongoing challenges in tourism and recent natural disasters.