SW Pacific country consisting of a group of islands (7)
I believe the answer is:
vanuatu
(Other definitions for vanuatu that I've seen before include "Pacific island country, formerly New Hebrides" , "Archipelago, formerly known as New Hebrides" , "Southwest Pacific island hit by Cyclone Pam in March" , "Country of the south-west Pacific" , "South Pacific Ocean nation of 80 islands" .)