Economy — Micronesia
GDP, employment, industries, public finance, and currency.
Profile updated 2026-06-02
⚡ Economy at a glance
GDP, employment, industries, public finance, and currency. Key figure for Micronesia: 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.…
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Economic overview
- Economic 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.
- Industries
tourism, construction, fish processing, specialized aquaculture, craft items from shell, wood, and pearls
- GDP - per capita (PPP)
$3,000.00 (USD)
- GDP - real growth rate
-0.2%
GDP & growth
- GDP - Gross Domestic Product (PPP)
$390,000,000 (USD)
- GDP Per Capita
$3,000.00 (USD)
- GDP - real growth rate
-0.2%
- GDP - official exchange rate
$307,000,000 (USD)
- 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%
- GDP - note
GDP supplemented by grant aid, averaging perhaps $100 million annually
- GDP by Sector- agriculture
26.3%
- GDP by Sector- Industry
18.9%
- GDP by Sector- services
54.8%
Prices & money
- Inflation Rate
2.2%
- Exchange Rate per US Dollar
US dollar (USD)
- Currency Name and Code
US Dollar (USD)
- Fiscal Year
1 October - 30 September
- Commercial Bank Prime Lending Rate
14.35%
Employment & labor
- Labor Force
16,360
- Unemployment Rate
22%
- 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
- Population Below Poverty Line
26.7%
Labor notes
- Labor Force by Occupation - note
two-thirds of the labor force are government employees
Public finance
- Annual Budget
$166,000,000 (USD)
- Budget Surplus or Deficit - percent of GDP
1.5%
- Taxes and other revenues - percent of GDP
31.6%
