GROSS DOMESTIC PRODUCT 2014
According to the preliminary estimates for 2014 GDP, Vanuatu’s economy continues to expand showing positive growth of over five consecutive years. The economy grew by 2.3 per cent in 2014 reflecting a better performance over the last four years. When compared to 2013, value added increased by 0.3 percentage point. Chart 1 shows year-on-year growth rates measured by percentage change in constant 2006 prices. The positive growth in 2014 can be attributed to a mixed combination of positive performance across different industries in Agriculture, fishing and forestry, Industry and Services.
The GDP growth of 2.3 per cent in 2014 was mainly driven by services, followed by agriculture and industry, though the overall performance shown in services is less than agriculture and industry it has more weight contributing to a share of 65 per cent of the overall GDP. The agriculture, fishing and forestry continued to perform positively registering a growth of 4.2 per cent in 2014 following a strong performance in 2013. All sub-industries under agriculture which contributes to this positive growth were animal production; it grew by 11.2 per cent, followed by crop production 2.6 per cent and the other two minor contributors’ forestry and fishing with a growth of 7.1 and 3.8 per cent respectively. Copra production has recovered dramatically following the rise in 2014 average price from VT 22,000 to VT 45,500 per ton. Cocoa price was more stable through the previous years; however production has been restricted over long period of time due to low yield from plantation where trees were old and unproductive.