Current Account Balance: Vanuatu

Analysis# Vanuatu Current Account Balance Vanuatu's current account balance stands at -11.6% of GDP in 2026, reflecting a persistently challenging external position. The country has deteriorated dramatically since 1980, when a cumulative decline of 1,260% occurred. While Vanuatu experienced a remarkable surplus peak of 15.1% in 1984, recent decades tell a starkly different story. The all-time low of -17.6% in 2022 underscores the severity of external imbalances that have gripped the economy. The past decade reveals volatile swings with few sustained improvements. A brief positive period emerged in 2018-2019 when surpluses of 2.8% and 5.2% provided respite, but deterioration returned sharply thereafter. The 2022 collapse marked a critical low point, followed by partial recovery to -6.6% in 2023, though deficits resumed at -15.4% in 2024. Projections suggest stabilization near -11.6% through 2026, indicating structural challenges requiring sustained policy attention to rebalance external accounts.