Economy - overview:
Economic activity consists largely of subsistence farming and fishing, and government, which employs two-thirds of the adult working population and receives funding largely - 58% in 2013 – from Compact of Free Association assistance provided by the US. The islands have few commercially valuable mineral deposits. The potential for tourism is limited by isolation, lack of adequate facilities, and limited internal air and water transportation.
Under the terms of the original Compact, the US provided $1.3 billion in grants and aid from 1986 to 2001. The US and the Federated States of Micronesia (FSM) negotiated a second (amended) Compact agreement in 2002-03 that took effect in 2004. The amended Compact runs for a 20-year period to 2023; during which the US will provide roughly $2.1 billion to the FSM. The amended Compact also develops a trust fund for the FSM that will provide a comparable income stream beyond 2024 when Compact grants end.
The country's medium-term economic outlook appears fragile because of dependence on US assistance and lackluster performance of its small and stagnant private sector.
GDP (purchasing power parity):
$347 million (2017 est.)
$340.1 million (2016 est.)
$330 million (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 215
GDP (official exchange rate):
$329 million (2017 est.)
GDP - real growth rate:
2% (2017 est.)
3% (2016 est.)
3.7% (2015 est.)
country comparison to the world: 155
GDP - per capita (PPP):
$3,400 (2017 est.)
$3,300 (2016 est.)
$3,200 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 189
GDP - composition, by end use:
household consumption: 83.5%
government consumption: 41.8%
investment in fixed assets: 24.3%
investment in inventories: 0%
exports of goods and services: 26.6%
imports of goods and services: -76.2% (2013 est.)
GDP - composition, by sector of origin:
agriculture: 26.3%
industry: 18.9%
services: 54.8% (2013 est.)
Agriculture - products:
taro, yams, coconuts, bananas, cassava (manioc, tapioca), sakau (kava), Kosraen citrus, betel nuts, black pepper, fish, pigs, chickens
Industries:
tourism, construction; specialized aquaculture, craft items (shell and wood)
Industrial production growth rate:
NA%
Labor force:
37,920 (2010 est.)
country comparison to the world: 201
Labor force - by occupation:
agriculture: 0.9%
industry: 5.2%
services: 93.9%
note: two-thirds of the labor force are government employees (2013 est.)
Unemployment rate:
16.2% (2010 est.)
country comparison to the world: 176
Population below poverty line:
26.7% (2000 est.)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Distribution of family income - Gini index:
61.1 (2013 est.)
country comparison to the world: 3
Budget:
revenues: $213.8 million
expenditures: $192.1 million (FY12/13 est.)
Taxes and other revenues:
65% of GDP (FY12/13 est.)
country comparison to the world: 6
Budget surplus (+) or deficit (-):
6.6% of GDP (FY12/13 est.)
country comparison to the world: 5
Public debt:
24.8% of GDP (2016 est.)
25.8% of GDP (2015 est.)
country comparison to the world: 179
Fiscal year:
1 October - 30 September
Inflation rate (consumer prices):
0.9% (2017 est.)
0.5% (2016 est.)
country comparison to the world: 35
Commercial bank prime lending rate:
15.7% (31 December 2016 est.)
15.7% (31 December 2016 est.)
country comparison to the world: 36
Stock of narrow money:
$196 million (31 December 2013 est.)
$44.07 million (31 December 2015 est.)
country comparison to the world: 184
Stock of broad money:
$178.3 million (31 December 2015 est.)
$225.2 million (31 December 2013 est.)
country comparison to the world: 192
Stock of domestic credit:
$56.98 million (31 December 2017 est.)
$-103 million (31 December 2015 est.)
country comparison to the world: 189
Market value of publicly traded shares:
$NA
Current account balance:
$11 million (2017 est.)
$10 million (2016 est.)
country comparison to the world: 59
Exports:
$88.3 million (2013 est.)
$39.88 million (2015 est.)
country comparison to the world: 197
Exports - commodities:
fish, sakau (kava), betel nuts, black pepper
Imports:
$258.5 million (2013 est.)
$167.8 million (2015 est.)
country comparison to the world: 201
Imports - commodities:
food, beverages, clothing, computers, household electronics, appliances, manufactured goods, automobiles, machinery and equipment, furniture, tools
Reserves of foreign exchange and gold:
$157 million (31 December 2016 est.)
$135.1 million (31 December 2015 est.)
country comparison to the world: 162
Debt - external:
$93.6 million (2013 est.)
$93.5 million (2012 est.)
country comparison to the world: 195
Stock of direct foreign investment - at home:
$15.8 million (2013 est.)
$34.4 million (2012 est.)
country comparison to the world: 132
Exchange rates:
the US dollar is used