Economy Micronesia, Federated States of
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. 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 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:
note: 0.9% two-thirds are government employees, 34.4%, 64.7%
Unemployment rate:
22% (2000 est.)