esia 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

@Micronesia, Federated States of:Economy

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 remoteness of the location and a lack
of adequate facilities hinder development. Financial assistance from
the US is the primary source of revenue, with the US pledged to spend
$1 billion in the islands in the 1990s. Geographical isolation and a
poorly developed infrastructure are major impediments to long-term
growth.

GDP: purchasing power parity-$220 million (1996 est.)
note: GDP is supplemented by grant aid, averaging perhaps $100 million
annually

GDP-real growth rate: 1% (1996 est.)

GDP-per capita: purchasing power parity-$1,760 (1996 est.)

GDP-composition by sector:
agriculture: NA%
industry: NA%
services: NA%

Inflation rate-consumer price index: 4% (1996 est.)

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

Unemployment rate: 27% (1989)

Budget:
revenues : $58 million
expenditures: $52 million, including capital expenditures of $4.7
million (FY95/96 est.)

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

Industrial production growth rate: NA%

Electricity-capacity: 38,500 kW (1995)

Electricity-production: NA kWh

Electricity-consumption per capita: NA kWh

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

Exports:
total value: $73 million (f.o.b., 1996 est.)
commodities: fish, garments, bananas, black pepper
partners: Japan, US, Guam

Imports:
total value: $168 million (c.i.f., 1996 est.)
commodities: food, manufactured goods, machinery and equipment,
beverages
partners: US, Japan, Australia

Debt-external: $129 million

Economic aid:
recipient: under terms of the Compact of Free Association, the US will
provide $1.3 billion in grant aid during the period 1986-2001

Currency: 1 United States dollar (US$) = 100 cents

Exchange rates: US currency is used

Fiscal year: 1 October-30 September

Communications

Telephones: 960

Telephone system:
domestic: islands interconnected by