Micronesia, Federated States of flag

The Economy of Micronesia, Federated States of

Micronesian; Chuukese, Kosraen(s Economy

Micronesia, Federated States of's map

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:

GDP - real growth rate: NA 0.3% (2005 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 28.9% industry: 15.2% services: 55.9% (2004 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index:

Inflation rate (consumer prices):

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.)

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

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:

Electricity - consumption: 178.6 million kWh (2002)

Electricity - exports: 0 kWh (2002)

Electricity - imports: 0 kWh (2002)

Oil - production:

Oil - consumption:

Oil - exports:

Oil - imports:

Oil - proved reserves:

Natural gas - production:

Natural gas - consumption:

Natural gas - exports:

Natural gas - imports:

Natural gas - proved reserves:

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 (f.o.b.) (2004 est.)

Exports - commodities: fish, garments, bananas, black pepper, sakau (kava), betel nut

Exports - partners:

Imports: $132.7 million f.o.b. (2004)

Imports - commodities: food, manufactured goods, machinery and equipment, beverages

Imports - partners:

Debt - external: $60.8 million (FY05 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: the US dollar is used

Fiscal year: