hrough 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 slow growth of the private sector.
Geographical isolation and a poorly developed infrastructure remain
major impediments to long-term growth.

GDP (purchasing power parity):
$277 million
note: GDP is supplemented by grant aid, averaging perhaps $100
million annually (2002 est.)

GDP - real growth rate:
1% (2002 est.)

GDP - per capita:
purchasing power parity - $2,000 (2002 est.)

GDP - composition by sector:
agriculture: 50%
industry: 4%
services: 46% (2000 est.)

Labor force:
NA

Labor force - by occupation:
two-thirds are government employees

Unemployment rate:
16% (1999 est.)

Population below poverty line:
26.7%

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
1% (2002 est.)

Budget:
revenues: $161 million ($69 million less grants)
expenditures: $160 million, including capital expenditures of NA
(1998 est.)

Agriculture - products:
black pepper, tropical fruits and vegetables, coconuts, cassava
(tapioca), betel nuts, sweet potatoes; pigs, chickens

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

Industrial production growth rate:
NA

Electricity - production:
192 million kWh (2002)

Electricity - production by source:
NA

Electricity - consumption:
178.6 million kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Exports:
$22 million (f.o.b.) (FY99/00 est.)

Exports - commodities:
fish, garments, bananas, black pepper

Exports - partners:
Japan, US, Guam (2000)

Imports:
$149 million f.o.b. (FY99/00 est.)

Imports - commodities:
food, manufactured goods, machinery and equipment, beverages

Imports - partners:
US, Australia, Japan (2000)

Debt - external:
$53.1 million (FY02/03 est.)

Economic aid - recipient:
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

Currency (code):
US dollar (USD)