G20 Foundation Publications Australia 2014 - Page 24

24 TRADE & FINANCE TRADE & FINANCE Vanuatu: discover what matters way higher compared to some of its peers in the region. The Vanuatu government recognizes the need to enhance and sustain private sector led economic growth with its benefits distributed equitably within Vanuatu. Stable financial system Simeon Athy, Governor, Reserve Bank of Vanuatu “If you are looking for a safe environment to retire and or to start up a business offshore in a more relaxed, safe and highly modern business environment then Vanuatu is the country that you should consider” Brief country background Vanuatu consists of a“Y-shaped” chain of more than 80 islands that is located about 1,750 km east of Australia, 500 km north east of New Caledonia and west of Fiji and south of Solomon Islands. The country’s total land area is approximately 12,200 square kilometers and the territorial waters cover 450,000 square kilometers. Despite its small size (population and land mass), it is a developing nation with great investment opportunities. The country gained its Independence from Britain and French in 1980 and self- governed itself under a Parliamentary democracy political system headed by a President, a Prime Minister (the head of the government) and 52 elected members of parliament. and is expected to gradually pick up in the years ahead, supported by the large donor infrastructure funded projects. Vanuatu is ranked amongst the top tourist destinations in the Pacific island region. Recently it was voted twice as the happiest place on earth by the Lonely Planet Index. Government policy fully supports domestic investments and growth Vanuatu has a positive economic environment and outlook Vanuatu’s economy is sound amidst the current challenging global economic conditions, thanks to the strong macroeconomic and policy buffers of the authorities. The IMF’s latest assessment of the country’s performance (2013 Article IV Consultation Review ) showed that despite the lower level of aid and public investments, the country’s per capita growth is higher compared to the other Pacific Islands. Inflation level is maintained within a 0-4% range of annual growth of the CPI, country reserves are maintained well above the four months of import cover and the country’s public Debt to GDP ratio is low compared to the region and by international standards. 2014 real GDP growth is projected at 3.6 percent There are a lot of untapped investment opportunities in the country’s agriculture sector, tourism industry, ICT and telecom sector and more. IMF in the same assessment above stressed that critical infrastructure investments both from the government and private sector are needed to enable the country develop these sectors to allow the country realize its full potential. The Government recognises this critical area and has taken steps in recent years through the close cooperation and support from the donor communities to address them though its Policy Action Agenda. Earlier deregulation in the telecom and aviation sectors has boosted growth and improve the business environment but more remains to be done. A number of donor/ government large infrastructure projects will kick off in 2015 and onwards that will improve the investment climate of the country . Vanuatu is currently ranked 59 in the ease of doing business ranking, Vanuatu’s financial system is stable and sound. Fiscal ́ɔɽѡ)ѥ͕ѽȁ́)ѡȁɍ̀ͥѥ)ѡՉͥɥ́Ʌ́ѡ)́ѡMѠAɕ)ɽɅєչȁѥѥٔ)ݕɕձѕ٥ɽи)Qչɕ͕́ѡݕ)ݸ͡ɔѕ́ѡɕѡ)ѥՔѼɅЁѥєե)ٕѽ̸QYՅԁٕɹ)ѥՕ́ѼɅєхх)ѕ́ɥѡЁѡYՅԁ=͡ɔ)ѕȁѥՕ́Ѽձ䁍ݥѠѡ)ѕɹѥɕեɕ́50Օ)ѡȁ٥ͽхɑ̸) ͕ѽȁ́䁽ѡ)ɸѥ́ѡЁɔɅ)Ѽ䁵ɸ́ɽչѡ)Q́ѡЁYՅԁ)́Q!ٕɔQ൙ɥ)٥ɽЀȁ)хх́хؤхє)ȁѠѥ́Xɕ)፡ɽ̸)YՅԁ́ɽ)٥ͽɕ)QI͕ٔ YՅԀI X)ٕ䁍ɥѥɽѡͅͽչ)Ʌѥѡѕѡ)չ丁Q ɕձѕ́٥͕)ѡͥ́ѡѥ́)͡ɔ́չȁѡɽ٥ͥѡ)I XЀѡ%ѥѥа)%ѕɹѥ Ёյȁ)ѡȁͱѥٔɕեɕ̸%她)Ёѡ́хЁɽѡ )ѕɹѥɕ镐٥ͽ)ѡ́хɑ̀ͥͥє)ͥє٥ͥ)ɔɕ́䁉́Ʌ)́ɥэ䁥)YՅԁ́ɼȁȁѡ͔)ѡ́ɥЁɽYՅԁ)ȁѡͥAɽ)䁱չɥչѕȁѕɽɥ)ѡͥAɕ)́ѕѼѥՔѼɽٔ)ɕ́ѼЁ䁱չɥ)ѕɽɥЁYՅԁ́ѕ)Ѽ́ѕɹѥѥ́)ѕȁѼЁQɵѥ፡)ɕЁݥѠѡȁɥ͑ѥ̸)ѥѥ́ɔ)хѥٔɽ)ɕͥՅ䁅)ٕ)YՅԁ́Ʌ)ͥѼɕ́Յ䁅)ٕ䰁ͥձхͱɽє)х䁅ͥٔ)ɽѠQѡɥѥ́ɔ)ɕͥ䁍͍́ѡх)ɽ٥́Ѽѡ)չձѥՑ)ѡ܁͕́ͼ́Ѽ)ɽٔѡȁݕɔ)ѡѼѥ٥ѥ́ѡЁݥ)ЁɽѠ!ݕٕȰ)٥ͥ)ͱչ䁱YՅԁ́՝)хٕͬɅ̰)չɑٕɅՍɕ́)܁ѕɅ䁱ٕ́Ёͥѥٔ)э́ɔɕ͡ݥѡ)ٕɹЁ́ձ䁍ѕѼѡ̸)YՅԁ́ɹ镐)Yԁɕ䁹є͕ɥ)I͕ٔ YՅԁՕ)չ(Ёѡɕ܁ѕ́嵕(Yԁѕ̤)Q́ɹ镐ѡɕ䁙)͕ɥ́ѡչ䁅ѕȀ啅)ȁєՉɅєLѡ)չ䁅ЁѡѕЁѡݽɱ)Ѽɹ锁́ɕ䁅ɽٕ)́)Qͥ屔ѡ͔ѕ)ɕ͕́́ѡY)ѥѡЁ݅́Օ)嵕ȁQݼ)ѥ́ѡЁɕѼՕ)єѡ͕ɥ́嵕ȁɔ(Yԁѕ̸Z)YՅԁՍ͙ձ䁱ѡ)Չɥѥɔİ-4)ٕѵЀULݕѡݼ)չɥ́YՅԁѼѡݽɱ)Յ(иQѕɹЁѥ)ѡȁȁɍՍѥ)ٕɹЁьɽ٥ѡٕѵ)єѡչ() ՍѥѡݡɘѼ)єѡѽɥЁե͔)́͡ɥم́ݡə́ɽչѡͱ́)Ʌѡѕȵͱ͡AЁYɽ̰)ɅͅхѥAЁY͕ɽЁ)ЀѥѥѕɹѥЁɅ̰)5ձQ%ͱ́ɽ́ɔ((