Australia has a direct interest in a prosperous and stable Vanuatu.
Australia is Vanuatu’s largest development partner, providing approximately 39 percent of total ODA to Vanuatu (excluding China which does not publish ODA figures).
Australia works closely with the Vanuatu Government to support economic growth, stability and poverty reduction in Vanuatu.
The Australian Government will provide an estimated $62.3 million in total Official Development Assistance (ODA) to Vanuatu in 2018-19.
This will include an estimated $41.9 million in bilateral funding to Vanuatu managed by DFAT.
Australia is an important economic partner for Vanuatu, providing the country with the majority of its tourists and foreign direct investment.
However, economic growth in Vanuatu is constrained by its distance to major markets, infrastructure needs, limited access to financial services and narrow market base.
Despite these challenges, Vanuatu has maintained strong economic growth over recent years compared with other countries in the region, with forecasts suggesting GDP growth of around four percent in 2018.
Economic and social stability have helped attract investment and tourists.