Is Micronesia a wealthy country?
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.
What is the GDP of Micronesia?
|Currency Name and Code||US Dollar (USD)|
|GDP - Gross Domestic Product (PPP)||$390,000,000 (USD)|
|GDP - note||GDP supplemented by grant aid, averaging perhaps $100 million annually|
|GDP - official exchange rate||$307,000,000 (USD)|
|GDP - real growth rate||-0.2%|
|GDP Per Capita||$3,000.00 (USD)|
|GDP by Sector- agriculture||26.3%|
|GDP by Sector- Industry||18.9%|
|GDP by Sector- services||54.8%|
|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%
|Population Below Poverty Line||26.7%|
|Labor Force By Occupation- agriculture||0.9%|
|Labor Force By Occupation- industry||20.6%|
|Labor Force By Occupation- services||78.5%|
|Labor Force by Occupation - note||two-thirds of the labor force are government employees|
|Fiscal Year||1 October - 30 September|
|Annual Budget||$166,000,000 (USD)|
|Budget Surplus or Deficit - percent of GDP||1.5%|
|Taxes and other revenues - percent of GDP||31.6%|
|Major Industries||tourism, construction, fish processing, specialized aquaculture, craft items from shell, wood, and pearls|
|Agriculture Products||black pepper, tropical fruits and vegetables, coconuts, cassava (tapioca), betel nuts, sweet potatoes; pigs, chickens|
|Exchange Rate per US Dollar||US dollar (USD)|
|Commercial Bank Prime Lending Rate||14.35%|