On December 8th , Sela Molisa, Finance Minister of Vanuatu, in his speech presenting 2010 national budget, announced that his country will see continued economic growth in 2010. According to the latest statistics, GDP growth in Vanuatu in 2009 had slowed to 3.8 percent, compared to 6.3 percent of growth in 2008. Although the world experienced a recession this year, the Minister assured the nation that the country’s economic growth remained positive. In relation to the 2009 budget, the Finance Minister said that a healthy operating surplus of Vt 487 million (approximately EUR 3.5 million) is expected at the end of the financial year. The recurrent revenue for 2010 is forecast to be Vt 14, 579 billion (approximately EUR 103.7 million).

Elaborating on expected growth areas, Sela Molisa stated “consistent with the news that global economic conditions are strengthening, growth in almost all components of the [Vanuatu]service sector is projected ”.

The Republic of Vanuatu is a tiny South-Pacific island nation, which, starting from 1971 has provided international services, through the specially created Vanuatu Offshore Financial Center. In recent decades, the country developed into one of the most recognizable offshore centers specializing in tax-exempt international companies registration, maritime fleet registration, and banking and insurance services. Vanuatu currently has no direct taxes, and has no signed Tax Information Exchange Agreements and no Double Taxation Agreements with any other jurisdiction. According to the Organization of Economic Co-operation and Development (OECD), Vanuatu is a jurisdictions which has committed to the internationally agreed tax standards, but has not yet substantially implemented them (a so-called “grey list” country).

Photo by CW Ye