Federated States of Micronesia/Economy

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 remoteness of the location and a lack of adequate facilities hinder development. Financial assistance from the US is the primary source of revenue, with the US pledged to spend $1.3 billion in the islands in 1986-2001. Geographical isolation and a poorly developed infrastructure are major impediments to long-term growth.

GDP: purchasing power parity - $240 million (1997 est.)
note: GDP is supplemented by grant aid, averaging perhaps $100 million annually

GDP - real growth rate: 3% (1997 est.)

GDP - per capita: purchasing power parity - $2,000 (1997 est.)

GDP - composition by sector:
agriculture: 19%
industry: 4%
services: 77% (1996 est.)

Population below poverty line: NA%

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

Inflation rate (consumer prices): 4% (1996 est.)

Labor force: NA

Labor force - by occupation: two-thirds are government employees

Unemployment rate: 27% (1989)

Budget:
revenues: $58 million
expenditures: $52 million, including capital expenditures of $4.7 million (FY95/96 est.)

Industries: tourism, construction, fish processing, craft items from shell, wood, and pearls

Industrial production growth rate: NA%

Electricity - production: NA kWh

Electricity - production by source:
fossil fuel: NA%
hydro: NA%
nuclear: NA%
other: NA%

Electricity - consumption: NA kWh

Electricity - exports: NA kWh

Electricity - imports: NA kWh

Agriculture - products: black pepper, tropical fruits and vegetables, coconuts, cassava (tapioca), sweet potatoes; pigs, chickens

Exports: $73 million (f.o.b., 1996 est.)

Exports - commodities: fish, garments, bananas, black pepper

Exports - partners: Japan, US, Guam

Imports: $168 million (c.i.f., 1996 est.)

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

Imports - partners: US, Japan, Australia

Debt - external: $111 million (1997 est.)

Economic aid - recipient: $79 million (1998); note - under terms of the Compact of Free Association, the US will provide $1.3 billion in grant aid during the period 1986-2001

Currency: 1 United States dollar (US$) = 100 cents

Exchange rates: US currency is used

Fiscal year: 1 October - 30 September