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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. In 1996, the country experienced a 20% reduction in revenues from the Compact of Free Association - the agreement between the US and Micronesia in which Micronesia receives $1.3 billion in financial and technical assistance over a 15-year period until 2001 - as a result of the second step-down under the agreement. Since these revenues accounted for 57% of consolidated government revenues, reduced Compact funding resulted in a severe depression. While Micronesia's economy appears to have bottomed out in 1999, the country's medium-term economic outlook remains fragile due to likely further reductions in external grants made under the US Compact funding. Geographical isolation and a poorly developed infrastructure remain major impediments to long-term growth.
|
| GDP: |
purchasing power parity - $263 million (1999 est.)
note:
GDP is supplemented by grant aid, averaging perhaps $100 million annually
|
| GDP - real growth rate: |
0.3% (1999 est.)
|
| GDP - per capita: |
purchasing power parity - $2,000 (1999 est.)
|
| GDP - composition by sector: |
agriculture:
19%
industry:
4%
services:
77% (1996 est.)
|
| Population below poverty line: |
NA%
|
| Household income or consumption by percentage share: |
lowest 10%:
NA%
highest 10%:
NA%
|
| Inflation rate (consumer prices): |
2.6% (FY98/99)
|
| Labor force - by occupation: |
two-thirds are government employees
|
| Unemployment rate: |
16% (1999 est.)
|
| Budget: |
revenues:
$161 million ($69 million less grants)
expenditures:
$160 million, including capital expenditures of $NA (1998 est.)
|
| Industries: |
tourism, construction, fish processing, craft items from shell, wood, and pearls
|
| Industrial production growth rate: |
NA%
|
| Electricity - production: |
NA kWh
|
| Electricity - production by source: |
fossil fuel:
NA%
hydro:
NA%
nuclear:
NA%
other:
NA%
|
| Electricity - consumption: |
NA kWh
|
| Agriculture - products: |
black pepper, tropical fruits and vegetables, coconuts, cassava (tapioca), sweet potatoes; pigs, chickens
|
| Exports: |
$73 million (f.o.b., 1996 est.)
|
| Exports - commodities: |
fish, garments, bananas, black pepper
|
| Exports - partners: |
Japan, US, Guam
|
| Imports: |
$168 million (c.i.f., 1996 est.)
|
| Imports - commodities: |
food, manufactured goods, machinery and equipment, beverages
|
| Imports - partners: |
US, Japan, Australia
|
| Debt - external: |
$111 million (1997 est.)
|
| 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: |
US dollar (USD)
|
| Exchange rates: |
the US dollar is used
|
| Fiscal year: |
1 October - 30 September
|
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