Overview: 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; also in December 1990 the US authorized the use of disaster relief funds for Micronesia because of damage from Typhoon Russ. In addition Micronesia earns about $4 million a year in fees from foreign commercial fishing concerns. 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.

GNP: $150 million, per capita $1,500; real growth rate NA% (1989 est.); note--GNP numbers reflect US spending

Inflation rate (consumer prices): NA%

Unemployment rate: 80% (1988)

Budget: revenues $110.8 million; expenditures NA, including capital expenditures of NA (1987 est.)

Exports: $1.6 million (f.o.b., 1983); commodities--copra; partners--NA

Imports: $48.9 million (c.i.f., 1983); commodities--NA; partners--NA

External debt: $NA

Industrial production: growth rate NA%

Electricity: 18,000 kW capacity; 40 million kWh produced, 380 kWh per capita (1990)

Industries: tourism, craft items from shell, wood, and pearl

Agriculture: mainly a subsistence economy; copra, black pepper; tropical fruits and vegetables, coconuts, cassava, sweet potatoes, pigs, chickens

Economic aid: under terms of the Compact of Free Association, the US will provide $1.3 billion in grant aid during the period 1986-2001

Currency: US currency is used

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 1991 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Micronesia, Federated States of Economy 1991 information contained here. All suggestions for corrections of any errors about Micronesia, Federated States of Economy 1991 should be addressed to the CIA.