Economy - overview:
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.
GDP:
purchasing power parity - $277 million
note: GDP is supplemented by grant aid, averaging perhaps $100 million annually (2002 est.)
GDP - real growth rate:
1% (2002 est.)
GDP - per capita:
purchasing power parity - $2,000 (2002 est.)
GDP - composition by sector:
agriculture: 50%
industry: 4%
services: 46% (2000 est.)
Population below poverty line:
26.7%
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices):
1% (2002 est.)
Labor force:
NA
Labor force - by occupation:
two-thirds are government employees
Unemployment rate:
16% (1999 est.)
Budget:
revenues: $161 million ($69 million less grants)
expenditures: $160 million, including capital expenditures of $NA (1998 est.)
Industries:
tourism, construction, fish processing, specialized aquaculture, craft items from shell, wood, and pearls
Industrial production growth rate:
NA%
Electricity - production:
NA kWh
Electricity - production by source:
fossil fuel: 0%
nuclear: 0%
other: 0%
hydro: 0%
Electricity - consumption:
NA kWh
Agriculture - products:
black pepper, tropical fruits and vegetables, coconuts, cassava (tapioca), betel nuts, sweet potatoes; pigs, chickens
Exports:
$22 million (f.o.b.) (FY99/00 est.)
Exports - commodities:
fish, garments, bananas, black pepper
Exports - partners:
Japan, US, Guam (2000)
Imports:
$149 million f.o.b. (FY99/00 est.)
Imports - commodities:
food, manufactured goods, machinery and equipment, beverages
Imports - partners:
US, Australia, Japan (2000)
Debt - external:
$53.1 million (FY02/03 est.)
Economic aid - recipient:
under terms of the Compact of Free Association, the US pledged $1.3 billion in grant aid during the period 1986-2001
Currency:
US dollar (USD)
Currency code:
USD
Exchange rates:
the US dollar is used 1
Fiscal year:
1 October - 30 September
NOTE: The information regarding Micronesia, Federated States of on this page is re-published from the 2003 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Guinea Geography 2003 information contained here. All suggestions for corrections of any errors about Micronesia, Federated States of Economy 2003 should be addressed to the CIA.
