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Micronesia Economy 2008

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. Under the original terms of the Compact of Free Association, the US provided $1.3 billion in grant aid during the period 1986-2001; the level of aid has been subsequently reduced. The Amended Compact of Free Association with the US guarantees the Federated States of Micronesia (FSM) millions of dollars in annual aid through 2023, and establishes a Trust Fund into which the US and the FSM make annual contributions in order to provide annual payouts to the FSM in perpetuity after 2023. The country's medium-term economic outlook appears fragile due not only to the reduction in US assistance but also to the current slow growth of the private sector.
GDP (purchasing power parity): $277 million; note - supplemented by grant aid, averaging perhaps $100 million annually (2002 est.)
GDP (official exchange rate): $232 million (2005)
GDP - real growth rate: 0.3% (2005 est.)
GDP - per capita (PPP): $2,300 (2005 est.)
GDP - composition by sector: agriculture: 28.9% industry: 15.2% services: 55.9% (2004 est.)
Labor force: 37,410 (2000)
Labor force - by occupation: agriculture: 0.9% industry: 34.4% services: 64.7% note: two-thirds are government employees (FY05 est.)
Unemployment rate: 22% (2000 est.)
Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%
Budget: revenues: $127.3 million ($69 million less grants) expenditures: $144.2 million (FY05 est.)
Inflation rate (consumer prices): 2.2% (2005)
Commercial bank prime lending rate: 14.03% (31 December 2007)
Stock of money: $22.45 million (31 December 2007)
Stock of quasi money: $72.49 million (31 December 2007)
Stock of domestic credit: NA (31 December 2007)
Agriculture - products: black pepper, tropical fruits and vegetables, coconuts, bananas, cassava (tapioca), sakau (kava), betel nuts, sweet potatoes; pigs, chickens; fish
Industries: tourism, construction; fish processing, specialized aquaculture; craft items (from shell, wood, and pearls)
Industrial production growth rate: NA%
Electricity - production: 192 million kWh (2002)
Electricity - consumption: 178.6 million kWh (2002)
Electricity - exports: 0 kWh (2002)
Electricity - imports: 0 kWh (2002)
Current account balance: -$34.3 million (FY05 est.)
Exports: $14 million (f.o.b.) (2004 est.)
Exports - commodities: fish, garments, bananas, black pepper, sakau (kava), betel nut
Exports - partners: Japan, US, Guam (2006)
Imports: $132.7 million f.o.b. (2004)
Imports - commodities: food, manufactured goods, machinery and equipment, beverages
Imports - partners: US, Japan, Hong Kong (2006)
Debt - external: $60.8 million (FY05 est.)
Market value of publicly traded shares: $NA
Currency (code): US dollar (USD)
Exchange rates: the US dollar is used

NOTE: The economy information regarding Micronesia on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Micronesia Economy 2008 information contained here. All suggestions for corrections of any errors about Micronesia Economy 2008 should be addressed to the CIA.