Economy

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 - $205 million (1994 est.) note: GDP is supplemented by grant aid, averaging perhaps $100 million annually

GDP - real growth rate: 1.4% (1994 est.)

GDP - per capita: purchasing power parity - $1,700 (1994 est.)

GDP - composition by sector: agriculture: NA% industry: NA% services: NA%

Inflation rate - consumer price index: 4% (1994 est.)

Labor force: NA by occupation: two-thirds are government employees

Unemployment rate: 27% (1989)

Budget: revenues: $45 million expenditures: $31 million, including capital expenditures of $NA (FY94/95 est.)