Micronesia, Federated States of

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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 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 countrys medium-term economic outlook appears fragile due not only to the reduction in US assistance but also to the current 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

agriculture 0.9%, industry 34.4%, services 64.7%
note: two-thirds are government employees (FY05 est.)

Unemployment rate

22% (2000 est.)

Population below poverty line

26.7% (2000)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate consumer prices

2.2% (2005)


revenues: $127.3 million ($69 million less grants)
expenditures: $144.2 million; including capital expenditures of $17.9 million (FY05 est.)

Agriculture products

black pepper, tropical fruits and vegetables, coconuts, bananas, cassava (tapioca), sakau (kava), betel nuts, sweet potatoes; pigs, chickens; fish


tourism, construction; fish processing, specialized aquaculture; craft items from shell, wood, and pearls

Industrial production growth rate


Electricity production

192 million kWh (2002)

Electricity consumption

178.6 million kWh (2002)

Electricity exports

0 kWh (2002)

Electricity imports

0 kWh (2002)

Current account balance

-$34.3 million (FY05 est.)


$14 million (f.o.b.) (2004 est.)

Exports commodities

fish, garments, bananas, black pepper, sakau (kava), betel nut

Exports partners

Japan, US, Guam (2006)


$132.7 million f.o.b. (2004)

Imports commodities

food, manufactured goods, machinery and equipment, beverages

Imports partners

US, Japan, Hong Kong (2006)

Debt external

$60.8 million (FY05 est.)

Economic aid recipient

$86.3 million
note: under terms of the Compact of Free Association, the US pledged $1.3 billion in grant aid during the period 1986-2001; the level of aid has been subsequently reduced (2004)

Currency code

US dollar (USD)

Exchange rates

the US dollar is used

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This page was last updated on 16 September, 2007
Source: CIA >>>

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An Intelligence Quotient or IQ is a score derived from one of several different standardized tests attempting to measure intelligence. Although the term "IQ" is still in common use, the scoring of modern IQ tests such as the Wechsler Adult Intelligence Scale is now based on a projection of the subject's measured rank on the Gaussian bell curve with a center value (average IQ) of 100, and a standard deviation of 15, although different tests may have different standard deviations. The average IQ scores for many populations have been rising at an average rate of three points per decade since the early 20th century with most of the increase in the lower half of the IQ range: a phenomenon called the Flynn effect. It is disputed whether these changes in scores reflect real changes in intellectual abilities, or merely methodological problems with past or present testing. (Wikipedie)

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