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 l990s. Geographical isolation and a poorly developed infrastructure are major impediments to long-term growth.

National product: GNP - purchasing power equivalent - $150 million (1989 est.)
note: GNP numbers reflect US spending

National product real growth rate: NA%

National product per capita: $1,500 (1989 est.)

Inflation rate (consumer prices): NA%

Unemployment rate: 27% (1989)

Budget:
revenues: $165 million
expenditures: $115 million, including capital expenditures of $20 million (1988 est.)

Exports: $2.3 million (f.o.b., 1988)
commodities: copra
partners: NA

Imports: $67.7 million (c.i.f., 1988)
commodities: NA
partners: NA

External debt: $NA

Industrial production: growth rate NA%

Electricity:
capacity: 18,000 kW
production: 40 million kWh
consumption per capita: 380 kWh (1990)

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

Agriculture: mainly a subsistence economy; black pepper; tropical fruits and vegetables, coconuts, cassava, sweet potatoes, pigs, chickens

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

NOTE: The information regarding Micronesia, Federated States of on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Micronesia, Federated States of Economy 1995 information contained here. All suggestions for corrections of any errors about Micronesia, Federated States of Economy 1995 should be addressed to the CIA.