Page last updated on February 08, 2019

Economy - overview:
Economic 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):
$348 million (2017 est.)
$341.1 million (2016 est.)
$331.4 million (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 215
[see also: GDP country ranks ]

GDP (official exchange rate):
$328 million (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
2% (2017 est.)
2.9% (2016 est.)
3.9% (2015 est.)
country comparison to the world: 153
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$3,400 (2017 est.)
$3,300 (2016 est.)
$3,200 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 189
[see also: GDP - per capita country ranks ]

GDP - composition, by end use:
household consumption: 83.5% (2013 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 48.4% (2016 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 29.5% (2016 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 1.9% (2016 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 27.5% (2016 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -77% (2016 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 26.3% (2013 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 18.9% (2013 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 54.8% (2013 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
taro, yams, coconuts, bananas, cassava (manioc, tapioca), sakau (kava), Kosraen citrus, betel nuts, black pepper, fish, pigs, chickens

Industries:
tourism, construction; specialized aquaculture, craft items (shell and wood)

Industrial production growth rate:
NA
[see also: Industrial production growth rate country ranks ]

Labor force:
37,920 (2010 est.)
country comparison to the world: 200
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 0.9%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 5.2%
[see also: Labor force - by occupation - industry country ranks ]
services: 93.9% (2013 est.)
note: two-thirds of the labor force are government employees

Unemployment rate:
16.2% (2010 est.)
country comparison to the world: 177
[see also: Unemployment rate country ranks ]

Population below poverty line:
26.7% (2000 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: NA
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
61.1 (2013 est.)
country comparison to the world: 3
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 213.8 million (FY12/13 est.)
[see also: Budget - revenues country ranks ]
expenditures: 192.1 million (FY12/13 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
65.2% (of GDP) (FY12/13 est.)
country comparison to the world: 7
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
6.6% (of GDP) (FY12/13 est.)
country comparison to the world: 4
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
24.5% of GDP (2017 est.)
25.3% of GDP (2016 est.)
country comparison to the world: 176
[see also: Public debt country ranks ]

Fiscal year:
1 October - 30 September

Inflation rate (consumer prices):
0.5% (2017 est.)
0.5% (2016 est.)
country comparison to the world: 28
[see also: Inflation rate (consumer prices) country ranks ]

Commercial bank prime lending rate:
15.73% (31 December 2017 est.)
15.7% (31 December 2016 est.)
country comparison to the world: 34
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$NA (31 December 2016)
$44.07 million (31 December 2015 est.)
$196 million (31 December 2013 est.)
country comparison to the world: 190
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$178.3 million (31 December 2015 est.)
$225.2 million (31 December 2013 est.)
country comparison to the world: 189
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$56.98 million (31 December 2017 est.)
-$103 million (31 December 2015 est.)
country comparison to the world: 189
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
NA
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$12 million (2017 est.)
$11 million (2016 est.)
country comparison to the world: 63
[see also: Current account balance country ranks ]

Exports:
$88.3 million (2013 est.)
country comparison to the world: 197
[see also: Exports country ranks ]

Exports - commodities:
fish, sakau (kava), betel nuts, black pepper

Imports:
$167.8 million (2015 est.)
$258.5 million (2013 est.)
country comparison to the world: 211
[see also: Imports country ranks ]

Imports - commodities:
food, beverages, clothing, computers, household electronics, appliances, manufactured goods, automobiles, machinery and equipment, furniture, tools

Reserves of foreign exchange and gold:
$203.7 million (31 December 2017 est.)
$135.1 million (31 December 2015 est.)
country comparison to the world: 174
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$93.6 million (2013 est.)
$93.5 million (2012 est.)
country comparison to the world: 194
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$15.8 million (2013 est.)
$34.4 million (2012 est.)
country comparison to the world: 139
[see also: Stock of direct foreign investment - at home country ranks ]

Exchange rates:

the US dollar is used