Economy and Economic

Development

Catlin, Kelly, and Erin

How they Live…

Main Business SectorsAgriculture

• Main Products• Copra, cocoa, coffee, cattle, timber, kava(root)• Copra is dried coconut albumen, main cash

crop

FisheriesTourismExporting

Economic Growth

Tourism Very rapid growth in this area Vast increase in total # of Tourists that come in

everyday.• Via Airline, Cruise Ship• Positive sign of Economic Growth

2005: Year of Tourism Over 50,000 visitors in 1997  

Currency

Vatu(VT) Exchange Rate

100 Vatu = 0.927 US Dollars 100 Vatu = 1.309 New Zealand Dollars

• If you have remaining NZ money!

As of September 9th 2005 Other currencies may be accepted at shops

and restaurants (US or Australian mainly)

Inflation/Imports/Exports

Interest rates on the rise. From 1996 to 1997

Total inflation up 2.8%• Clothing and Footwear prices up 6.7%• Transport and Communications up 5.4%

Imports Prices in Vanuatu determined by Australian

imports and inflation rates $138 million in 2002

Exports $79 million in 2002

Basic Economy

GDP Equaled $563 million (2003) is the total value of final goods and services

produced within a country's borders in a year • United States GDP equaled $10.4 trillion

Tourism speaks for 40% of GDP in 2003 Agricultural Exports make up 20% of GDP

Per Capita Income = $1,180 (2003)

Resources

http://www.photius.com/rankings/gdp_2003_0.html

http://www.traveldocs.com/vu/economy.htm

http://www.appliedlanguage.com/country_guides/vanuatu_country_economy.shtml