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Economy - overview:
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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. In November 2002, the country experienced a further reduction in future revenues from the Compact of Free Association - the agreement with the US in which Micronesia received $1.3 billion in financial and technical assistance over a 15-year period until 2001. The country's medium-term economic outlook appears fragile due not only to the reduction in US assistance but also to the slow growth of the private sector. Geographical isolation and a poorly developed infrastructure remain major impediments to long-term growth.
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GDP:
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purchasing power parity - $277 million
note: $277 million $277 million GDP is supplemented by grant aid, averaging perhaps $100 million annually (2002 est.)
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GDP - real growth rate:
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1% (2002 est.)
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GDP - per capita:
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purchasing power parity - $2,000 (2002 est.)
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GDP - composition by sector:
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agriculture: 50%
industry: 4%
services: 46% (2000 est.)
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Population below poverty line:
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26.7%
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Household income or consumption by percentage share:
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lowest 10%: NA%
highest 10%: NA%
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Inflation rate (consumer prices):
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1% (2002 est.)
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Labor force:
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NA
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Labor force - by occupation:
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two-thirds are government employees
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Unemployment rate:
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16% (1999 est.)
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Budget:
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revenues: $161 million ($69 million less grants)
expenditures: $160 million, including capital expenditures of $NA (1998 est.)
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Industries:
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tourism, construction, fish processing, specialized aquaculture, craft items from shell, wood, and pearls
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Industrial production growth rate:
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NA%
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Electricity - production:
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NA kWh
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Electricity - production by source:
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fossil fuel: 0%
nuclear: 0%
other: 0%
hydro: 0%
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Electricity - consumption:
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NA kWh
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Agriculture - products:
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black pepper, tropical fruits and vegetables, coconuts, cassava (tapioca), betel nuts, sweet potatoes; pigs, chickens
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Exports:
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$22 million (f.o.b.) (FY 99/00 est.)
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Exports - commodities:
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fish, garments, bananas, black pepper
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Exports - partners:
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Japan, US, Guam (2000)
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Imports:
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$149 million f.o.b. (FY 99/00 est.)
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Imports - commodities:
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food, manufactured goods, machinery and equipment, beverages
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Imports - partners:
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US, Australia, Japan (2000)
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Debt - external:
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$53.1 million (FY 02/03 est.)
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Economic aid - recipient:
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under terms of the Compact of Free Association, the US pledged $1.3 billion in grant aid during the period 1986-2001
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Currency:
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US dollar (USD)
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Currency code:
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USD
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Exchange rates:
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the US dollar is used 1
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Fiscal year:
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1 October - 30 September
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