Micronesia Federated States of Economy - 2022

GEOGRAPHICAL NAMES 

Economic 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.

Real GDP (purchasing power parity)

$390 million (2019 est.)

$390 million (2018 est.)

$389 million (2017 est.)

note: data are in 2017 dollars

Real GDP growth rate

2% (2017 est.)

2.9% (2016 est.)

3.9% (2015 est.)

Real GDP per capita

$3,500 (2019 est.) note: data are in 2017 dollars

$3,500 (2018 est.) note: data are in 2017 dollars

$3,200 (2015 est.)

GDP (official exchange rate)

$328 million (2017 est.)

Inflation rate (consumer prices)

0.5% (2017 est.)

0.5% (2016 est.)

GDP - composition, by sector of origin

agriculture: 26.3% (2013 est.)

industry: 18.9% (2013 est.)

services: 54.8% (2013 est.)

GDP - composition, by end use

household consumption: 83.5% (2013 est.)

government consumption: 48.4% (2016 est.)

investment in fixed capital: 29.5% (2016 est.)

investment in inventories: 1.9% (2016 est.)

exports of goods and services: 27.5% (2016 est.)

imports of goods and services: -77% (2016 est.)

Agricultural products

coconuts, cassava, vegetables, sweet potatoes, bananas, pork, plantains, fruit, eggs, beef

Industries

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

Industrial production growth rate

N/A

Labor force

37,920 (2010 est.)

Labor force - by occupation

agriculture: 0.9%

industry: 5.2%

services: 93.9% (2013 est.)

note: two-thirds of the labor force are government employees

Unemployment rate

16.2% (2010 est.)

Youth unemployment rate (ages 15-24)

total: 18.9%

male: 10.4%

female: 29.9% (2014)

Population below poverty line

41.2% (2013 est.)

Gini Index coefficient - distribution of family income

40.1 (2013 est.)

Household income or consumption by percentage share

lowest 10%: NA

highest 10%: NA

Budget

revenues: 213.8 million (FY12/13 est.)

expenditures: 192.1 million (FY12/13 est.)

Budget surplus (+) or deficit (-)

6.6% (of GDP) (FY12/13 est.)

Public debt

24.5% of GDP (2017 est.)

25.3% of GDP (2016 est.)

Taxes and other revenues

65.2% (of GDP) (FY12/13 est.)

Fiscal year

1 October - 30 September

Current account balance

$12 million (2017 est.)

$11 million (2016 est.)

Exports

$88.3 million (2013 est.)

Exports - partners

Thailand 73%, Japan 10%, China 9% (2019)

Exports - commodities

fish and fish products, coral/shells, scrap metals, mollusks, office machinery/parts (2019)

Imports

$167.8 million (2015 est.)

$258.5 million (2013 est.)

Imports - partners

United States 32%, China 16%, Japan 14%, Taiwan 9%, Philippines 6%, South Korea 6% (2019)

Imports - commodities

poultry meats, netting, broadcasting equipment, various meats, fish products (2019)

Reserves of foreign exchange and gold

$203.7 million (31 December 2017 est.)

$135.1 million (31 December 2015 est.)

Debt - external

$93.6 million (2013 est.)

$93.5 million (2012 est.)

Exchange rates

the US dollar is used

NOTE: The information regarding Micronesia Federated States of on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Micronesia Federated States of 2022 information contained here. All suggestions for corrections of any errors about Micronesia Federated States of 2022 should be addressed to the CIA or the source cited on each page.