Real GDP Growth: Vanuatu

Analysis# Vanuatu Real GDP Growth Vanuatu's real GDP growth stands at 2.8% in 2026, representing a modest recovery within a broader pattern of volatility. The nation's economy has contracted significantly since 1980, declining 49.1% in total growth trajectory. The all-time peak of 11.7% in 1990 contrasts sharply with the severe contraction of -5.2% in 2002, illustrating the economy's sensitivity to external shocks and natural disasters. The period from 2020 to 2022 captured Vanuatu's most dramatic swings, with a -5% contraction in 2020 followed by a strong 5.2% rebound in 2022. Since that peak recovery, growth has moderated considerably, settling into a slower 0.9-2.8% range through 2026. This deceleration suggests stabilization at a lower growth level rather than sustained momentum, reflecting ongoing structural challenges in the Pacific island economy.