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Micronesia, Federated States of Economy Profile 2018

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Economy - overviewEconomic activity consists largely of subsistence farming and fishing, and government, which employs two-thirds of the adult working population and receives funding largely - 58% in 2013 – from Compact of Free Association assistance provided by the US. The islands have few commercially valuable mineral deposits. The potential for tourism is limited by isolation, lack of adequate facilities, and limited internal air and water transportation.

Under the terms of the original Compact, the US provided $1.3 billion in grants and aid from 1986 to 2001. The US and the Federated States of Micronesia (FSM) negotiated a second (amended) Compact agreement in 2002-03 that took effect in 2004. The amended Compact runs for a 20-year period to 2023; during which the US will provide roughly $2.1 billion to the FSM. The amended Compact also develops a trust fund for the FSM that will provide a comparable income stream beyond 2024 when Compact grants end.

The country's medium-term economic outlook appears fragile because of dependence on US assistance and lackluster performance of its small and stagnant private sector.
GDP (purchasing power parity)$347 million (2017 est.)
$340.1 million (2016 est.)
$330 million (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)$329 million (2016 est.)
GDP - real growth rate2% (2017 est.)
3% (2016 est.)
3.7% (2015 est.)
GDP - per capita (PPP)$3,400 (2017 est.)
$3,300 (2016 est.)
$3,200 (2015 est.)
note: data are in 2017 dollars
GDP - composition, by end usehousehold consumption: 83.5%
government consumption: 41.8%
investment in fixed assets: 24.3%
investment in inventories: 0%
exports of goods and services: 26.6%
imports of goods and services: -76.2% (2013 est.)
GDP - composition by sectoragriculture: 26.3%
industry: 18.9%
services: 54.8% (2013 est.)
Population below poverty line26.7% (2000 est.)
Labor force37,920 (2010 est.)
Labor force - by occupationagriculture: 0.9%
industry: 5.2%
services: 93.9%
note: two-thirds of the labor force are government employees (2013 est.)
Unemployment rate16.2% (2010 est.)
Household income or consumption by percentage sharelowest 10%: NA%
highest 10%: NA%
Distribution of family income - Gini index61.1 (2013 est.)
Budgetrevenues: $213.8 million
expenditures: $192.1 million (FY12/13 est.)
Taxes and other revenues65% of GDP (FY12/13 est.)
Budget surplus (+) or deficit (-)6.6% of GDP (FY12/13 est.)
Public debt24.8% of GDP (2016 est.)
25.8% of GDP (2015 est.)
Inflation rate (consumer prices)0.9% (2017 est.)
0.5% (2016 est.)
Commercial bank prime lending rate15.7% (31 December 2016 est.)
15.7% (31 December 2016 est.)
Stock of narrow money$196 million (31 December 2013 est.)
$44.07 million (31 December 2015 est.)
Stock of broad money$178.3 million (31 December 2015 est.)
$225.2 million (31 December 2013 est.)
Stock of domestic credit$56.98 million (31 December 2017 est.)
$-103 million (31 December 2015 est.)
Market value of publicly traded shares$NA
Agriculture - productstaro, yams, coconuts, bananas, cassava (manioc, tapioca), sakau (kava), Kosraen citrus, betel nuts, black pepper, fish, pigs, chickens
Industriestourism, construction; specialized aquaculture, craft items (shell and wood)
Industrial production growth rateNA%
Current Account Balance$11 million (2017 est.)
$10 million (2016 est.)
Exports$88.3 million (2013 est.)
$39.88 million (2015 est.)
Exports - commoditiesfish, sakau (kava), betel nuts, black pepper
Imports$258.5 million (2013 est.)
$167.8 million (2015 est.)
Imports - commoditiesfood, beverages, clothing, computers, household electronics, appliances, manufactured goods, automobiles, machinery and equipment, furniture, tools
Reserves of foreign exchange and gold$157 million (31 December 2016 est.)
$135.1 million (31 December 2015 est.)
Debt - external$93.6 million (2013 est.)
$93.5 million (2012 est.)
Stock of direct foreign investment - at home$15.8 million (2013 est.)
$34.4 million (2012 est.)
Exchange ratesthe US dollar is used
Fiscal year1 October - 30 September

Source: CIA World Factbook
This page was last updated on January 20, 2018