4391
consulate(s) general: Honolulu, Tamuning (Guam)

Diplomatic representation from the US:

chief of mission: Ambassador Miriam K. HUGHES
embassy: 101 Upper Pics Road, Kolonia
mailing address: P. O. Box 1286, Kolonia, Pohnpei, 96941
telephone: [691] 320-2187
FAX: [691] 320-2186

Flag description:

light blue with four white five-pointed stars centered; the stars
are arranged in a diamond pattern

Economy
Micronesia, Federated States of

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. Under
the original terms of the Compact of Free Association, the US
provided $1.3 billion in grant aid during the period 1986-2001; the
level of aid has been subsequently reduced. 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 country's 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%

Budget:

revenues: $127.3 million ($69 million less grants)
expenditures: $144.2 million (FY05 est.)

Fiscal year:

1 October - 30 September

Inflation rate (consumer prices):

2.2% (2005)

Commercial bank prime lending rate:

14.0