Economics & Development

This statistical snapshot highlights Vanuatu’s economic performance and outlook through 2025. After modest growth in 2016–2019, the economy contracted sharply by 5.0 percent in 2020 before recovering in subsequent years. GDP growth is estimated at 1.7 percent in 2025, while GDP per capita growth remains negative. Inflation is projected at 2.2 percent in 2025. Fiscal pressures have intensified, with the overall fiscal deficit estimated at 7.5 percent of GDP and government debt rising to 65.1 percent of GDP. The current account deficit is expected to widen to 4.0 percent of GDP, while foreign direct investment remains stable at about 4.3 percent of GDP.

This statement was delivered by the François-Philippe Champagne, Minister of Finance and National Revenue of Canada, on behalf of a multi-country constituency, comprising Antigua and Barbuda, The Bahamas, Barbados, Belize, Canada, Dominica, Grenada, Guyana, Ireland, Jamaica, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines. at the 113th Meeting of the Development Committee, held on April 16, 2026. The statement addresses the current global economic environment, marked by heightened uncertainty, inflationary pressures, and tighter financial conditions that disproportionately impact low-income countries and small island developing states (SIDS). It reaffirms the constituency's strong support for Ukraine against Russia's ongoing invasion, with Canada pledging a loan guarantee of up to 1 billion dollar and Ireland committing Euro 40 million in aid alongside Euro 25 million for energy infrastructure. On the Middle East, the statement calls for respect of international law, adherence to the ceasefire, and World Bank preparedness for Gaza reconstruction. On development priorities, the statement welcomes the World Bank's emphasis on quality job creation, particularly through private sector engagement and agribusiness in low-income countries, and calls for expanded economic opportunities for women and youth. It endorses the Bank's commitment to devote 45% of annual financing to climate action and urges the extension of the Climate Change Action Plan beyond June 2026, while also supporting the Mission 300 initiative for electricity access in Sub-Saharan Africa and advocating for a tailored strategy for small and vulnerable states. Regarding institutional matters, the statement encourages continued balance sheet optimization through hybrid capital, guarantees, and blended finance, and underscores the importance of mobilizing private capital at scale, especially in fragile and conflict-affected settings. It also highlights the Forum for Crisis Resilience, jointly launched by Canada and the World Bank, and calls for stronger coordination among multilateral development banks, the United Nations, and civil society to maximize impact and reduce duplication.

This statement, delivered by Luis Caputo, Minister of Economy of Argentina, on behalf of Argentina, Bolivia, Chile, Paraguay, Peru, and Uruguay, to the 113th Meeting of the Development Committee on April 16, 2026, highlights the complex global environment confronting developing economies amid persistent geopolitical tensions, inflationary risks, policy uncertainty, and economic fragmentation. It underscores the particular challenges facing Latin America, including weak growth, low productivity, high inequality, labor‑market informality, and constrained fiscal space, while emphasizing the region’s significant potential rooted in abundant natural resources, human capital, and technological dynamism. The statement stresses that sustainable development and quality job creation depend critically on sound macroeconomic fundamentals, regulatory predictability, openness, and private‑sector‑led growth supported by credible institutions. It welcomes the World Bank Group’s Jobs Strategy and its focus on creating an enabling environment for more and better‑paid jobs, including the use of sector compacts and measurable indicators tailored to middle‑income countries. The statement calls for a stronger, coordinated One‑WBG approach to policy advice, financing, and private capital mobilization through IBRD, IFC, and MIGA, particularly in areas such as energy, mining, digitalization, agriculture, education, tourism, and water security. It emphasizes the need for diversified and reliable energy systems, responsible critical minerals development, and digital and AI adoption to boost productivity and resilience, while underscoring the importance of a calibrated, country‑specific approach to middle‑income country engagement and IBRD graduation. Overall, it reaffirms the constituency’s commitment to constructive engagement with the World Bank Group to translate reforms and private investment into inclusive growth and quality employment across Latin America.

This Statement was delivered by Mathias Cormann, OECD Secretary‑General, and Carsten Staur, Chair of the OECD Development Assistance Committee, at the 113th Meeting of the Development Committee on April 16, 2026. It sets out the OECD’s assessment of the global economic and development finance landscape in a context of heightened geopolitical uncertainty and mounting pressures on developing economies, noting that the evolving conflict in the Middle East has disrupted energy markets, increased commodity prices, and weakened growth prospects, particularly for energy‑importing emerging and developing economies, while global growth remains below pre‑conflict expectations and debt vulnerabilities continue to intensify. It underscores the critical role of official development assistance amid unprecedented real‑term declines in aid budgets and calls for more effective, targeted, and catalytic use of limited public resources, highlighting OECD initiatives to modernise development finance allocation, strengthen effectiveness through the 2030 Pact for Effective Development Co‑operation, and support countries approaching graduation from official development assistance eligibility. The statement emphasises the need to scale up private finance mobilisation, blended finance instruments, and philanthropic contributions to help close widening financing gaps and accelerate progress toward the Sustainable Development Goals, while also stressing the importance of boosting domestic resource mobilisation through improved tax capacity, enhanced transparency, and efforts to curb illicit financial flows. It further highlights OECD leadership on multidimensional well‑being measurement, gender‑responsive development finance, and global partnerships under the Sevilla Platform for Action, and calls overall for renewed multilateral cooperation, stronger development finance systems, and evidence‑based policy action to enhance the impact, coherence, and sustainability of development financing in an increasingly constrained global environment.

This statement, delivered by Edgar Amador Zamora, Minister of Finance and Public Credit of Mexico, on behalf of Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, and the Kingdom of Spain, to the 113th Meeting of the Development Committee on April 16, 2026, underscores that the jobs challenge facing developing economies through 2035 is a defining and structural test for the global development agenda. It highlights that demographic change, urbanization, technological shifts, and migration pressures will require job creation at an unprecedented scale, beyond what cyclical recovery alone can deliver. Drawing on historical evidence and recent World Bank analysis, the statement emphasizes the indispensable role of the State in addressing structural market failures, coordinating investment, and supporting productive transformation, particularly in labor‑intensive sectors such as infrastructure, energy, logistics, and early‑stage manufacturing. It welcomes the World Bank’s evolving recognition of industrial policy and productive transformation, while stressing that such strategies require flexible, credible, and countercyclical macro‑fiscal frameworks fit for development rather than rigid constraints that limit public investment. The statement calls for a balanced approach in which sovereign lending remains the backbone of development finance, complemented by selective and additional private‑sector engagement through IFC and other instruments to address specific risks and market gaps. It urges caution and flexibility in graduation and financial recalibration processes, recognizing heterogeneous country circumstances and heightened global volatility. Overall, the statement advocates pragmatic, context‑specific policies that strengthen public capabilities, sustain productive investment, and enable the World Bank to remain a stabilizing and catalytic partner in addressing the global jobs challenge.

Estimated growth was 3.8 percent in 2025, driven by private consumption, supported by easing inflation (3.3 percent) and strong remittances. Poverty was estimated at 17.1 per cent in 2025 (US$4.20/day, 2021 PPP) and is projected to continue declining. Growth is expected to average 4.1 per cent over 2026–2028, amid increased tourism from hosting an international sporting event. Revenue mobilization and private sector competitiveness remain priorities.

GDP growth is projected to remain subdued in FY26 due to the impact of the Middle East conflict, elevated inflation, and weak investment amid persistent financial sector vulnerabilities. Poverty increased by 1.4 million between FY24–25, with the conflict projected to push an additional 1.2 million into poverty in FY26. Growth is expected to recover gradually in FY27–28 as reforms in domestic resource mobilization, the financial sector, and the business environment accelerate.