Economy in Micronesia, Federated States of

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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 remoteness of the location and a lack of adequate facilities hinder development. 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. Geographical isolation and a poorly developed infrastructure are major impediments to long-term growth.

GDP: purchasing power parity—$220 million (1996 est.)

note: GDP is supplemented by grant aid averaging perhaps $100 million annually

GDP—real growth rate: 1% (1996 est.)

GDP—per capita: purchasing power parity—$1 760 (1996 est.)

GDP—composition by sector:

agriculture: NA%

industry: NA%

services: NA%

Inflation rate—consumer price index: 4% (1996 est.)

Labor force: NA

by occupation: two-thirds are government employees

Unemployment rate: 27% (1989)

Budget:

revenues : $58 million

expenditures: $52 million including capital expenditures of $4.7 million (FY95/96 est.)

Industries: tourism construction fish processing craft items from shell wood and pearls

Industrial production growth rate: NA%

Electricity—capacity: 38 500 kW (1995)

Electricity—production: NA kWh

Electricity—consumption per capita: NA kWh

Agriculture—products: black pepper tropical fruits and vegetables coconuts cassava (tapioca) sweet potatoes; pigs chickens

Exports:

total value: $73 million (f.o.b. 1996 est.)

commodities: fish garments bananas black pepper

partners: Japan US Guam

Imports:

total value: $168 million (c.i.f. 1996 est.)

commodities: food manufactured goods machinery and equipment beverages

partners: US Japan Australia

Debt—external: $129 million

Economic aid:

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

Currency: 1 United States dollar (US$) = 100 cents

Exchange rates: US currency is used

Fiscal year: 1 October—30 September

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