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Federated States of Micronesia:
Economy

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Federated States of Micronesia Page


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


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