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 billion in the islands in the 1990s. Geographical isolation and a poorly developed infrastructure are major impediments to long-term growth.

GDP purchasing power parity - $220 million (1996 est.)
note: GDP is supplemented by grant aid, averaging perhaps $100 million annually

GDP - real growth rate 1% (1996 est.)

GDP - per capita purchasing power parity - $1,760 (1996 est.)

GDP - composition by sector
agriculture: NA%
industry: NA%
services: NA%

Inflation rate - consumer price index 4% (1996 est.)

Labor force NA
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 - capacity 38,500 kW (1995)

Electricity - production NA kWh

Electricity - consumption per capita NA kWh

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

Exports
total value: $73 million (f.o.b., 1996 est.)
commodities: fish, garments, bananas, black pepper
partners: Japan, US, Guam

Imports
total value: $168 million (c.i.f., 1996 est.)
commodities: food, manufactured goods, machinery and equipment, beverages
partners: US, Japan, Australia

Debt - external $129 million

Economic aid
recipient: 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

NOTE: The information regarding Micronesia, Federated States of on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Micronesia, Federated States of Economy 1998 information contained here. All suggestions for corrections of any errors about Micronesia, Federated States of Economy 1998 should be addressed to the CIA.