15 Mar 2010

Vanuatu economy to grow by over 3% this year

9:44 am on 15 March 2010

The International Monetary Fund says the Vanuatu economy should grow by nearly 4 percent this year.

An IMF mission visited Vanuatu last week and says the economy weathered the global economic crisis well and is expected to recover further this year,

Growth slowed in 2009 across all sectors, but was cushioned by resilient tourism, which benefited from a shift by travellers from Australia and New Zealand to short-haul

destinations such as Vanuatu due to the global downturn.

Construction activity also held up well supported by donor inflows, while agricultural output declined in response to dropping prices.

Growth is projected to pick up moderately to 3.75 percent in 2010 and further to 4.25 in 2011.