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This 2016 Article IV Consultation highlights that Vanuatu’s economy is gradually recovering from the extensive damages caused by Cyclone Pam, which hit the country in March 2015. The cyclone led to a decline in GDP of about 0.8 percent in 2015. The current account deficit widened to 11 percent of GDP in 2015 from an average of 3 percent of GDP in the previous three years. Near-term prospects are favorable, but risks to the outlook are tilted to the downside. Real GDP growth is expected to reach 4 percent in 2016 and 4.5 percent in 2017 driven by the recovery in tourism and agriculture, and further ramping-up of infrastructure projects.

Economic assistance --- Economic aid --- Foreign aid program --- Foreign assistance --- Grants-in-aid, International --- International economic assistance --- International grants-in-aid --- Economic policy --- International economic relations --- Conditionality (International relations) --- Vanuatu --- Republic of Vanuatu --- République de Vanuatu --- Ripablik blong Vanuatu --- République du Vanuatu --- República de Vanuatu --- Republik Vanuatu --- Vanuatua Respubliko --- Vanuatská republika --- Vanuatun tasavalta --- Vanuatu Vabariik --- Vanuatuko Errepublika --- Republica Vanuatu --- República do Vanuatu --- Vanuatu Cumhuriyeti --- Republika e Vanautusë --- Cộng hòa Vanuatu --- Republika ng Vanuatu --- Вануату --- Рэспубліка Вануату --- Rėspublika Vanuatu --- Република Вануату --- Republika Vanuatu --- Βανουάτου --- Vanouatou --- Δημοκρατία του Βανουάτου --- Dēmokratia tou Vanouatou --- バヌアツ --- Banuatsu --- バヌアツ共和国 --- Banuatsu Kyōwakoku --- 瓦努阿图 --- Wanu'atu --- Vanuaaku --- People's Provisional Government of Vanuaaku --- New Hebrides --- Economic policy. --- Exports and Imports --- Infrastructure --- Macroeconomics --- Public Finance --- Natural Disasters --- Debt --- Debt Management --- Sovereign Debt --- International Lending and Debt Problems --- Investment --- Capital --- Intangible Capital --- Capacity --- Climate --- Natural Disasters and Their Management --- Global Warming --- Data Collection and Data Estimation Methodology --- Computer Programs: Other --- Public finance & taxation --- International economics --- Natural disasters --- Banking --- Econometrics & economic statistics --- Public debt --- External debt --- Public and publicly-guaranteed external debt --- Environment --- National accounts --- Debts, Public --- Debts, External --- Saving and investment --- Fiscal policy