Micronesia, Federated States of Economy Profile 2009

Economy - overview

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)

$238.1 million (2008 est.)
$277 million (2002 est.)
note: data are in 2008 US dollars
GDP supplemented by grant aid, averaging perhaps $100 million annually

GDP (official exchange rate)

$238.1 million (2008)

GDP - real growth rate

NA
0.3% (2005 est.)

GDP - per capita (PPP)

$2,200 (2008 est.)
$2,300 (2005 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 28.9%
industry: 15.2%
services: 55.9% (2004 est.)

Population below poverty line

26.7% (2000)

Labor force

16,360 (2008)

Labor force - by occupation

agriculture: 0.9%
industry: 34.4%
services: 64.7%
note: two-thirds are government employees (FY05 est.)

Unemployment rate

22% (2000 est.)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Budget

revenues: $166 million ($69 million less grants)
expenditures: $152.7 million (FY07 est.)

Inflation rate (consumer prices)

2.2% (2005)

Commercial bank prime lending rate

NA% (31 December 2008)
14.03% (31 December 2007)

Stock of money

$NA (31 December 2008)
$22.45 million (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$72.49 million (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$NA (31 December 2007)

Industries

tourism, construction; fish processing, specialized aquaculture; craft items (from shell, wood, and pearls)

Industrial production growth rate

NA%

Electricity - production

192 million kWh (2002)

Electricity - production by source

NA

Electricity - consumption

178.6 million kWh (2002)

Electricity - exports

0 kWh (2002)

Electricity - imports

0 kWh (2002)

Current Account Balance

-$34.3 million (FY05 est.)

Agriculture - products

black pepper, tropical fruits and vegetables, coconuts, bananas, cassava (tapioca), sakau (kava), betel nuts, sweet potatoes; pigs, chickens; fish; Kosraen citrus

Exports

$14 million (2004 est.)

Exports - commodities

fish, garments, bananas, black pepper, sakau (kava), betel nut

Imports

$132.7 million (2004)

Imports - commodities

food, manufactured goods, machinery and equipment, beverages

Debt - external

$60.8 million (FY05 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$106.4 million (2005)

Currency (code)

USD

Currency (code)

US dollar (USD)

Exchange rates

the US dollar is used

Fiscal year

1 October - 30 September