Marshall Islands Economy - 2021

Economic overview

US assistance and lease payments for the use of Kwajalein Atoll as a US military base are the mainstay of this small island country. Agricultural production, primarily subsistence, is concentrated on small farms; the most important commercial crops are coconuts and breadfruit. Industry is limited to handicrafts, tuna processing, and copra. Tourism holds some potential. The islands and atolls have few natural resources, and imports exceed exports.

The Marshall Islands received roughly $1 billion in aid from the US during the period 1986-2001 under the original Compact of Free Association (Compact). In 2002 and 2003, the US and the Marshall Islands renegotiated the Compact's financial package for a 20-year period, 2004 to 2024. Under the amended Compact, the Marshall Islands will receive roughly $1.5 billion in direct US assistance. Under the amended Compact, the US and Marshall Islands are also jointly funding a Trust Fund for the people of the Marshall Islands that will provide an income stream beyond 2024, when direct Compact aid ends.

Real GDP growth rate

2.5% (2017 est.)

3.6% (2016 est.)

2% (2015 est.)

Inflation rate (consumer prices)

0% (2017 est.)

-1.5% (2016 est.)

Real GDP (purchasing power parity)

$227 million (2018 est.)

$196 million (2017 est.)

$219 million (2017 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$222 million (2017 est.)

Real GDP per capita

$3,889 (2018 est.)

$3,600 (2017 est.)

$3,776 (2017 est.)

note: data are in 2017 dollars

Gross national saving

17.2% of GDP (2018 est.)

18.3% of GDP (2017 est.)

GDP - composition, by sector of origin

agriculture: 4.4% (2013 est.)

industry: 9.9% (2013 est.)

services: 85.7% (2013 est.)

GDP - composition, by end use

government consumption: 50% (2016 est.)

investment in fixed capital: 17.8% (2016 est.)

investment in inventories: 0.2% (2016 est.)

exports of goods and services: 52.9% (2016 est.)

imports of goods and services: -102.3% (2016 est.)

Ease of Doing Business Index scores

Overall score: 50.9 (2020)

Starting a Business score: 88.4 (2020)

Trading score: 78.9 (2020)

Enforcement score: 55.9 (2020)

Agricultural products

coconuts

Industries

copra, tuna processing, tourism, craft items (from seashells, wood, and pearls)

Industrial production growth rate

N/A

Labor force

10,670 (2013 est.)

Labor force - by occupation

agriculture: 11%

industry: 16.3%

services: 72.7% (2011 est.)

Unemployment rate

36% (2006 est.)

30.9% (2000 est.)

Population below poverty line

N/A

Household income or consumption by percentage share

lowest 10%: NA

highest 10%: NA

Budget

revenues: 116.7 million (2013 est.)

expenditures: 113.9 million (2013 est.)

Taxes and other revenues

52.6% (of GDP) (2013 est.)

Budget surplus (+) or deficit (-)

1.3% (of GDP) (2013 est.)

Public debt

25.5% of GDP (2017 est.)

30% of GDP (2016 est.)

Fiscal year

1 October - 30 September

Current account balance

-$1 million (2017 est.)

$15 million (2016 est.)

Exports

$0 (2013 est.)

Exports - partners

Poland 28%, Denmark 19%, South Korea 13%, Indonesia 10%, Cyprus 6% (2019)

Exports - commodities

ships, fish, recreational boats, broadcasting equipment, coal tar oil (2019)

Imports

$103.8 million (2016 est.)

$133.7 million (2013 est.)

Imports - partners

South Korea 39%, China 27%, Japan 15% (2019)

Imports - commodities

ships, refined petroleum, centrifuges, recreational boats, boat propellers (2019)

Debt - external

$97.96 million (2013 est.)

$87 million (2008 est.)

Exchange rates

the US dollar is used