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 (2000 est.) |
| 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.) |
| Agriculture - products: | black pepper, tropical fruits and vegetables, coconuts, cassava (tapioca), betel nuts, sweet potatoes; pigs, chickens |
| Industries: | tourism, construction, fish processing, specialized aquaculture, craft items from shell, wood, and pearls |
| Industrial production growth rate: | NA |
| Electricity - production: | NA kWh |
| Electricity - consumption: | NA kWh |
| 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 |
| Fiscal year: | 1 October - 30 September
Source: CIA World Factbook
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