Economy

Economy—overview: The economy benefits substantially from financial assistance from the US. The rate of funding has declined as locally generated government revenues have grown. An agreement for the years 1986 to 1992 entitled the islands to $228 million for capital development government operations and special programs. Since 1992 funding has been extended one year at a time. The commonwealth received $27.7 million from FY93/94 through FY95/96. For FY96/97 through FY02/03 funding of $11 million will be provided for infrastructure with an equal local match. A rapidly growing chief source of income is the tourist industry which now employs about 50% of the work force. Japanese tourists predominate. The agricultural sector is of minor importance and is made up of cattle ranches and small farms producing coconuts breadfruit tomatoes and melons. Garment production is the fastest growing industry with employment of 12 000 mostly Chinese workers and shipments of $800 million to the US in 1997 under duty and quota exemptions.

GDP: purchasing power parity—$524 million (1994 est.)

note: GDP numbers reflect US spending

GDP—real growth rate: NA%

GDP—per capita: purchasing power parity—$10 500 (1994 est.)

GDP—composition by sector:

agriculture: NA%

industry: NA%

services: NA%

Inflation rate—consumer price index: 6.5% (1994 est.)

Labor force:

total: 7 476 total indigenous labor force; 2 699 unemployed; 22 560 foreign workers (1995)

by occupation: NA

Unemployment rate: 14% (residents)

Budget:

revenues: $190.4 million

expenditures: $190.4 million including capital expenditures of $19.1 million (FY94/95)

Industries: tourism construction garments handicrafts

Industrial production growth rate: NA%

Electricity—capacity: NA kW

Electricity—production: NA kWh

Electricity—consumption per capita: NA kWh

Agriculture—products: coconuts fruits vegetables; cattle

Exports: NA

commodities: garments

partners: NA

Imports: NA

commodities: food construction equipment and materials petroleum products

partners: US Japan

Debt—external: $NA

Economic aid: none

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

Exchange rates: US currency is used

Fiscal year: 1 October—30 September