Latest GDP News

 

GROSS DOMESTIC PRODUCT 2016

The preliminary estimates for 2016 GDP, Vanuatu's economy continued to expand showing positive growth for more than ten consecutive years. The economy grew by 3.5 per cent in 2016 reflecting a strong performance over the last six years. When compared to 2015, value added increased by 3.3 percentage points. Chart 1 shows year-on-year growth rates measured by percentage change in constant 2006 prices. The strong performance in 2016 can be attributed to the recovery in all three industries, agriculture, industry and services.

The GDP growth of 3.5 per cent in 2016 was mainly driven by agriculture, followed by industry and services. Though the overall performance in industry has continued from the strong growth in 2015 the contribution to GDP growth is less than agriculture and services. In terms of contribution by industries, services have the largest share of 66 per cent which contributes to a positive growth of 1.9 per cent in 2016.

Agriculture, Fishing and Forestry has recovered from a decline in 2015 by registering a positive growth of 5.1 per cent; an increase of 10.7 percentage points. The components of agriculture that contribute to this positive growth, were crop production, it grew by 5.9 per cent, followed by animal production at 2.6 per cent, fishing at 3.9 per cent and forestry at 0.7 per cent. Crop production forms a dominant 80 per cent share of the total output in agriculture; therefore its recovery has driven the industry's contribution to boosted overall GDP growth. Copra production has recovered strongly following the rise in 2016 average price from VT 35,000 to 51,000 per ton. Cocoa price were more stable than in previous years; however production has been restricted over long period of time due to low yield from plantation where trees were old and unproductive. The level of production has improved in 2016 compared to 2015 but it was still below the level shown in 2014.

 

Table 1

 

 download