Federated States of Micronesia:
Economy

Other pages in this profile of the Federated States of Micronesia:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition Economic activity consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting, except for high-grade phosphate. The potential for a tourist industry exists, but the remote location, a lack of adequate facilities, and limited air connections hinder development. Under the original terms of the Compact of Free Association, the US provided $1.3 billion in grant aid during the period 1986-2001; the level of aid has been subsequently reduced. The Amended Compact of Free Association with the US guarantees the Federated States of Micronesia (FSM) millions of dollars in annual aid through 2023, and establishes a Trust Fund into which the US and the FSM make annual contributions in order to provide annual payouts to the FSM in perpetuity after 2023. The country's medium-term economic outlook appears fragile due not only to the reduction in US assistance but also to the current slow growth of the private sector.
GDP (purchasing power parity)	Definition - World rank and map $277 million; note - supplemented by grant aid, averaging perhaps $100 million annually (2002 est.)
GDP (official exchange rate)	Definition $232 million (2005)
GDP - real growth rate	Definition - World rank and map 0.3% (2005 est.)
GDP - per capita	Definition - World rank and map $2,300 (2005 est.)
GDP - composition by sector	Definition agriculture: 28.9% industry: 15.2% services: 55.9% (2004 est.)
Labor force	Definition 37,410 (2000)
Labor force - by occupation	Definition agriculture: 0.9% industry: 34.4% services: 64.7% note: two-thirds are government employees (FY05 est.)
Unemployment rate	Definition - World rank and map 22% (2000 est.)
Population below poverty line	Definition 26.7% (2000)
Household income or consumption by percentage share	Definition lowest 10%: NA% highest 10%: NA%
Inflation rate (consumer prices)	Definition - World rank and map 2.2% (2005)
Budget	Definition revenues: $127.3 million ($69 million less grants) expenditures: $144.2 million (FY05 est.)
Agriculture - products	Definition black pepper, tropical fruits and vegetables, coconuts, bananas, cassava (tapioca), sakau (kava), betel nuts, sweet potatoes; pigs, chickens; fish
Industries	Definition tourism, construction; fish processing, specialized aquaculture; craft items (from shell, wood, and pearls)
Industrial production growth rate	Definition - World rank and map NA%
Electricity - production	Definition - World rank and map 192 million kWh (2002)
Electricity - consumption	Definition - World rank and map 178.6 million kWh (2002)
Electricity - consumption per capita	Definition - World rank and map 1,658.9 kWh (2002)
Electricity - exports	Definition 0 kWh (2002)
Electricity - imports	Definition 0 kWh (2002)
Current account balance	Definition - World rank and map -$34.3 million (FY05 est.)
Exports	Definition - World rank and map $14 million (f.o.b.) (2004 est.)
Exports - commodities	Definition fish, garments, bananas, black pepper, sakau (kava), betel nut
Exports - partners	Definition Japan, US, Guam (2006)
Imports	Definition - World rank and map $132.7 million f.o.b. (2004)
Imports - commodities	Definition food, manufactured goods, machinery and equipment, beverages
Imports - partners	Definition US, Japan, Hong Kong (2006)
Debt - external	Definition - World rank and map $60.8 million (FY05 est.)
Market value of publicly traded shares	Definition $NA
Economic aid - recipient	Definition $106.4 million (2005)
Currency (code)	Definition US dollar (USD)
Exchange rates	Definition the US dollar is used
Fiscal year	Definition 1 October - 30 September

Federated States of Micronesia: Economy

Federated States of Micronesia:
Economy