Federated States of Micronesia - Economic Indicators

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...

Continue reading View Factbook for Federated States of Micronesia

GDP Reference Last Previous Units Frequency
Nominal Gross Domestic Product 2017 336,427,532 329,895,600 NCU Annual
Real Gross Domestic Product 2017 246,841,938 242,001,900 NCU Annual
Investment 1983 40,200,000 NCU Annual
Government Consumption 1983 62,100,000 NCU Annual
Nominal Fixed Investment (gross fixed capital formation) 1983 37,800,000 NCU Annual
Trade Reference Last Previous Units Frequency
Current Account Balance 2023 3.17 3.09 Percent Of GDP Annual
Exports of Goods and Services 2016 87,818,061 82,807,219 NCU Annual
Imports of Goods and Services 2016 238,857,800 244,221,500 NCU Annual
Balance of Goods 2014 -66,358,900 -86,438,700 USD Annual
Government Reference Last Previous Units Frequency
Outstanding Public Debt 2023 0.05 0.06 Billions National Currency Annual
Government Revenues 2023 0.24 0.24 Billions National Currency Annual
Government Expenditures 2023 0.21 0.21 Billions National Currency Annual
Markets Reference Last Previous Units Frequency
Lending Rate 2013 15.7 14.32 % Annual
Business Reference Last Previous Units Frequency
Change in Inventories 1983 2,400,000 NCU Annual
Demographics Reference Last Previous Units Frequency
Net Migration 2017 -6,000 # Annual
Population 2017 105,544 104,937 # Annual
Birth Rate 2016 23.71 23.64 # per Ths. pop. Annual
Death Rate 2016 6.22 6.22 # per Ths. pop. Annual

Factbook

Background

Background:
The Caroline Islands are a widely scattered archipelago in the western Pacific Ocean; they became part of a UN Trust Territory under US administration following World War II. The eastern four island groups adopted a constitution in 1979 and chose to become the Federated States of Micronesia. (The westernmost island group became Palau.) Independence came in 1986 under a Compact of Free Association (COFA) with the US, which was amended and renewed in 2004. Present concerns include large-scale unemployment, overfishing, overdependence on US foreign aid, and state perception of inequitable allocation of US aid.
As a signatory to the COFA with the US, Micronesians enjoy the right to migrate to and settle in any part of the US and its territories - this privilege reduces stresses on the island economy and the environment.

Geography

Location:
Oceania, island group in the North Pacific Ocean, about three-quarters of the way from Hawaii to Indonesia
Geographic coordinates:
6 55 N, 158 15 E
Map references:
Oceania
Area:
total: 702 sq km
land: 702 sq km
water: 0 sq km (fresh water only)
note: includes Pohnpei (Ponape), Chuuk (Truk) Islands, Yap Islands, and Kosrae (Kosaie)
country comparison to the world: 191
Area - comparative:
four times the size of Washington, DC (land area only)
Land boundaries:
0 km
Coastline:
6,112 km
Maritime claims:
territorial sea: 12 nm
exclusive economic zone: 200 nm
Climate:
tropical; heavy year-round rainfall, especially in the eastern islands; located on southern edge of the typhoon belt with occasionally severe damage
Terrain:
islands vary geologically from high mountainous islands to low, coral atolls; volcanic outcroppings on Pohnpei, Kosrae, and Chuuk
Elevation:
mean elevation: NA
elevation extremes: lowest point: Pacific Ocean 0 m
highest point: Nanlaud on Pohnpei 782 m
Natural resources:
timber, marine products, deep-seabed minerals, phosphate
Land use:
agricultural land: 25.5%
arable land 2.3%; permanent crops 19.7%; permanent pasture 3.5%
forest: 74.5%
other: 0% (2011 est.)
Irrigated land:
0 sq km NA (2012)
Population - distribution:
the majority of the populaton lives in the coastal areas of the high islands; the mountainous interior is largely uninhabited; less than half of the population lives in urban areas
Natural hazards:
typhoons (June to December)
Environment - current issues:
overfishing, climate change, pollution
Environment - international agreements:
party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection
signed, but not ratified: none of the selected agreements
Geography - note:
composed of four major island groups totaling 607 islands

People & Society

Population:
104,196 (July 2017 est.)
country comparison to the world: 194
Nationality:
noun: Micronesian(s)
adjective: Micronesian; Chuukese, Kosraen(s), Pohnpeian(s), Yapese
Ethnic groups:
Chuukese/Mortlockese 49.3%, Pohnpeian 29.8%, Kosraean 6.3%, Yapese 5.7%, Yap outer islanders 5.1%, Polynesian 1.6%, Asian 1.4%, other 0.8% (2010 est.)
Languages:
English (official and common language), Chuukese, Kosrean, Pohnpeian, Yapese, Ulithian, Woleaian, Nukuoro, Kapingamarangi
Religions:
Roman Catholic 54.7%, Protestant 41.1% (includes Congregational 38.5%, Baptist 1.1%, Seventh Day Adventist 0.8%, Assembly of God 0.7%), Mormon 1.5%, other 1.9%, none 0.7%, unspecified 0.1% (2010 est.)
Age structure:
0-14 years: 30.3% (male 16,050/female 15,520)
15-24 years: 19.59% (male 10,236/female 10,173)
25-54 years: 39.19% (male 19,737/female 21,094)
55-64 years: 6.99% (male 3,560/female 3,727)
65 years and over: 3.93% (male 1,849/female 2,250) (2017 est.)
population pyramid:
Dependency ratios:
total dependency ratio: 62.4
youth dependency ratio: 55.3
elderly dependency ratio: 7.1
potential support ratio: 14.1 (2015 est.)
Median age:
24total: 25.1 years
male: 24.4 years
female: 25.8 years (2017 est.)
country comparison to the world: 157
Population growth rate:
-0.52% (2017 est.)
country comparison to the world: 224
Birth rate:
20 births/1,000 population (2017 est.)
country comparison to the world: 80
Death rate:
4.2 deaths/1,000 population (2017 est.)
country comparison to the world: 207
Net migration rate:
-20.9 migrant(s)/1,000 population (2017 est.)
country comparison to the world: 220
Population distribution:
the majority of the populaton lives in the coastal areas of the high islands; the mountainous interior is largely uninhabited; less than half of the population lives in urban areas
Urbanization:
urban population: 22.5% of total population (2017)
rate of urbanization: 1.33% annual rate of change (2015-20 est.)
Major urban areas - population:
PALIKIR (capital) 7,000 (2014)
Sex ratio:
at birth: 1.05 male(s)/female
0-14 years: 1.03 male(s)/female
15-24 years: 1.01 male(s)/female
25-54 years: 0.94 male(s)/female
55-64 years: 0.97 male(s)/female
65 years and over: 0.81 male(s)/female
total population: 0.98 male(s)/female (2017 est.)
Maternal mortality ratio:
100 deaths/100,000 live births (2015 est.)
country comparison to the world: 72
Infant mortality rate:
total: 19.8 deaths/1,000 live births
male: 21.9 deaths/1,000 live births
female: 17.5 deaths/1,000 live births (2017 est.)
country comparison to the world: 80
Life expectancy at birth:
total population: 73.1 years
male: 71.1 years
female: 75.3 years (2017 est.)
country comparison to the world: 139
Total fertility rate:
2.41 children born/woman (2017 est.)
country comparison to the world: 82
Health expenditures:
13.7% of GDP (2014)
country comparison to the world: 5
Physicians density:
0.19 physicians/1,000 population (2009)
Hospital bed density:
3.2 beds/1,000 population (2009)
Drinking water source:
improved:
urban: 94.8% of population
rural: 87.4% of population
total: 89% of population
unimproved:
urban: 5.2% of population
rural: 12.6% of population
total: 11% of population (2015 est.)
Sanitation facility access:
improved:
urban: 85.1% of population
rural: 49% of population
total: 57.1% of population
unimproved:
urban: 14.9% of population
rural: 51% of population
total: 42.9% of population (2015 est.)
HIV/AIDS - adult prevalence rate:
NA
HIV/AIDS - people living with HIV/AIDS:
NA
HIV/AIDS - deaths:
NA
Major infectious diseases:
note: active local transmission of Zika virus by Aedes species mosquitoes has been identified in this country (as of August 2016); it poses an important risk (a large number of cases possible) among US citizens if bitten by an infective mosquito; other less common ways to get Zika are through sex, via blood transfusion, or during pregnancy, in which the pregnant woman passes Zika virus to her fetus (2016)
Obesity - adult prevalence rate:
45.8% (2016)
country comparison to the world: 10
Education expenditures:
12.5% of GDP (2015)

Government

Country name:
conventional long form: Federated States of Micronesia
conventional short form: none
local long form: Federated States of Micronesia
local short form: none
former: Trust Territory of the Pacific Islands, Ponape, Truk, and Yap Districts
abbreviation: FSM
etymology: the term "Micronesia" is a 19th-century construct of two Greek words, "micro" (small) and "nesoi" (islands), and refers to thousands of small islands in the western Pacific Ocean
Government type:
federal republic in free association with the US
Capital:
name: Palikir
geographic coordinates: 6 55 N, 158 09 E
time difference: UTC+11 (16 hours ahead of Washington, DC, during Standard Time)
Administrative divisions:
4 states; Chuuk (Truk), Kosrae (Kosaie), Pohnpei (Ponape), Yap
Independence:
3 November 1986 (from the US-administered UN trusteeship)
National holiday:
Constitution Day, 10 May (1979)
Constitution:
history: drafted June 1975, ratified 1 October 1978, entered into force 10 May 1979
amendments: proposed by Congress, by a constitutional convention, or by public petition; passage requires approval by at least three-fourths majority of votes in at least three-fourths of the states; note – at least every 10 years as part of a general or special election, voters are asked whether to hold a constitution convention; a majority of affirmative votes is required to proceed; amended 1990 (2018)
Legal system:
mixed legal system of common and customary law
International law organization participation:
has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt
Citizenship:
citizenship by birth: no
citizenship by descent only: at least one parent must be a citizen of FSM
dual citizenship recognized: no
residency requirement for naturalization: 5 years
Suffrage:
18 years of age; universal
Executive branch:
chief of state: President Peter M. CHRISTIAN (since 11 May 2015); Vice President Yosiwo P. GEORGE (since 11 May 2015); note - the president is both chief of state and head of government
head of government: President Peter M. CHRISTIAN (since 11 May 2015); Vice President Yosiwo P. GEORGE (since 11 May 2015)
cabinet: Cabinet includes the vice president and the heads of the 8 executive departments
elections/appointments: president and vice president indirectly elected by Congress from among the 4 'at large' senators for a 4-year term (eligible for a second term); election last held on 11 May 2015 (next to be held in 2019)
election results: Peter M. CHRISTIAN elected president by Congress; Yosiwo P. GEORGE elected vice president
Legislative branch:
description: unicameral Congress (14 seats; 10 members directly elected in single-seat constituencies by simple majority vote to serve 2-year terms and 4 directly elected from each of the 4 states by proportional representation vote to serve 4-year terms)
elections: last held on 7 March 2017 (next to be held in March 2019)
election results: percent of vote - NA; seats - independent 14
Judicial branch:
highest court(s): Federated States of Micronesia (FSM) Supreme Court (consists of the chief justice and not more than 5 associate justices and organized into appellate and criminal divisions)
judge selection and term of office: justices appointed by the president of the Federated States of Micronesia with the approval of two-thirds of Congress; justices appointed for life
subordinate courts: the highest state-level courts are: Chuuk Supreme Court; Korsae State Court; Pohnpei State Court; Yap State Court
Political parties and leaders:
no formal parties
Political pressure groups and leaders:
NA
International organization participation:
ACP, ADB, AOSIS, FAO, G-77, IBRD, ICAO, ICRM, IDA, IFC, IFRCS, IMF, IOC, IOM, IPU, ITSO, ITU, MIGA, OPCW, PIF, Sparteca, SPC, UN, UNCTAD, UNESCO, WHO, WMO
Diplomatic representation in the US:
chief of mission: Ambassador Akillino Harris SUSAIA (since 24 April 2017)
chancery: 1725 N Street NW, Washington, DC 20036
telephone: [1] (202) 223-4383
FAX: [1] (202) 223-4391
consulate(s) general: Honolulu (HI), Tamuning (Guam)
Diplomatic representation from the US:
chief of mission: Ambassador Robert Annan RILEY III (since 16 August 2016)
embassy: 101 Upper Pics Road, Kolonia
mailing address: P. O. Box 1286, Kolonia, Pohnpei, 96941; U.S. Embassy in Micronesia, 4120 Kolonia Place, Washington, D.C. 20521-4120
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; blue symbolizes the Pacific Ocean, the stars represent the four island groups of Chuuk, Kosrae, Pohnpei, and Yap
National symbol(s):
four, five-pointed, white stars on a light blue field; national colors: light blue, white
National anthem:
name: "Patriots of Micronesia"
lyrics/music: unknown
note: adopted 1991; also known as "Across All Micronesia"; the music is based on the 1820 German patriotic song "Ich hab mich ergeben", which was the West German national anthem from 1949-1950; variants of this tune are used in Johannes Brahms' "Festival Overture" and Gustav Mahler's "Third Symphony"

Economy

Economy - 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.
GDP (purchasing power parity):
$347 million (2017 est.)
$340.1 million (2016 est.)
$330 million (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 215
GDP (official exchange rate):
$329 million (2017 est.)
GDP - real growth rate:
2% (2017 est.)
3% (2016 est.)
3.7% (2015 est.)
country comparison to the world: 155
GDP - per capita (PPP):
$3,400 (2017 est.)
$3,300 (2016 est.)
$3,200 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 189
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% (2013 est.)
GDP - composition, by sector of origin:
agriculture: 26.3%
industry: 18.9%
services: 54.8% (2013 est.)
Agriculture - products:
taro, yams, coconuts, bananas, cassava (manioc, tapioca), sakau (kava), Kosraen citrus, betel nuts, black pepper, fish, pigs, chickens
Industries:
tourism, construction; specialized aquaculture, craft items (shell and wood)
Industrial production growth rate:
NA%
Labor force:
37,920 (2010 est.)
country comparison to the world: 201
Labor force - by occupation:
agriculture: 0.9%
industry: 5.2%
services: 93.9%
note: two-thirds of the labor force are government employees (2013 est.)
Unemployment rate:
16.2% (2010 est.)
country comparison to the world: 176
Population below poverty line:
26.7% (2000 est.)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Distribution of family income - Gini index:
61.1 (2013 est.)
country comparison to the world: 3
Budget:
revenues: $213.8 million
expenditures: $192.1 million (FY12/13 est.)
Taxes and other revenues:
65% of GDP (FY12/13 est.)
country comparison to the world: 6
Budget surplus (+) or deficit (-):
6.6% of GDP (FY12/13 est.)
country comparison to the world: 5
Public debt:
24.8% of GDP (2016 est.)
25.8% of GDP (2015 est.)
country comparison to the world: 179
Fiscal year:
1 October - 30 September
Inflation rate (consumer prices):
0.9% (2017 est.)
0.5% (2016 est.)
country comparison to the world: 35
Commercial bank prime lending rate:
15.7% (31 December 2016 est.)
15.7% (31 December 2016 est.)
country comparison to the world: 36
Stock of narrow money:
$196 million (31 December 2013 est.)
$44.07 million (31 December 2015 est.)
country comparison to the world: 184
Stock of broad money:
$178.3 million (31 December 2015 est.)
$225.2 million (31 December 2013 est.)
country comparison to the world: 192
Stock of domestic credit:
$56.98 million (31 December 2017 est.)
$-103 million (31 December 2015 est.)
country comparison to the world: 189
Market value of publicly traded shares:
$NA
Current account balance:
$11 million (2017 est.)
$10 million (2016 est.)
country comparison to the world: 59
Exports:
$88.3 million (2013 est.)
$39.88 million (2015 est.)
country comparison to the world: 197
Exports - commodities:
fish, sakau (kava), betel nuts, black pepper
Imports:
$258.5 million (2013 est.)
$167.8 million (2015 est.)
country comparison to the world: 201
Imports - commodities:
food, beverages, clothing, computers, household electronics, appliances, manufactured goods, automobiles, machinery and equipment, furniture, tools
Reserves of foreign exchange and gold:
$157 million (31 December 2016 est.)
$135.1 million (31 December 2015 est.)
country comparison to the world: 162
Debt - external:
$93.6 million (2013 est.)
$93.5 million (2012 est.)
country comparison to the world: 195
Stock of direct foreign investment - at home:
$15.8 million (2013 est.)
$34.4 million (2012 est.)
country comparison to the world: 132
Exchange rates:
the US dollar is used

Energy

Electricity access:
population without electricity: 42,934
electrification - total population: 59%
electrification - urban areas: 100%
electrification - rural areas: 45% (2012)
Electricity - production:
192 million kWh (2002 est.)
country comparison to the world: 191
Electricity - consumption:
178.6 million kWh (2002 est.)
country comparison to the world: 193
Electricity - exports:
0 kWh (2013 est.)
country comparison to the world: 136
Electricity - imports:
0 kWh (2013 est.)
country comparison to the world: 150
Electricity - installed generating capacity:
18,000 kW (2015 est.)
country comparison to the world: 206
Electricity - from fossil fuels:
96% of total installed capacity (2015 est.)
country comparison to the world: 52
Electricity - from nuclear fuels:
0% of total installed capacity (2015 est.)
country comparison to the world: 91
Electricity - from hydroelectric plants:
1% of total installed capacity (2013 est.)
country comparison to the world: 146
Electricity - from other renewable sources:
3% of total installed capacity (2013 est.)
country comparison to the world: 112
Crude oil - production:
0 bbl/day (2014 est.)
country comparison to the world: 137
Crude oil - exports:
0 bbl/day (2014 est.)
country comparison to the world: 124
Crude oil - imports:
0 bbl/day (2014 est.)
country comparison to the world: 127
Crude oil - proved reserves:
0 bbl (1 January 2014 est.)
country comparison to the world: 136
Refined petroleum products - production:
0 bbl/day (2014 est.)
country comparison to the world: 144
Refined petroleum products - exports:
0 bbl/day
country comparison to the world: 156
Natural gas - production:
0 cu m (2014 est.)
country comparison to the world: 136
Natural gas - proved reserves:
0 cu m
country comparison to the world: 140
Carbon dioxide emissions from consumption of energy:
105 Mt (2010 est.)
country comparison to the world: 214

Communications

Telephones - fixed lines:
total subscriptions: 6,883
subscriptions per 100 inhabitants: 6 (July 2016 est.)
country comparison to the world: 202
Telephones - mobile cellular:
total: 23,412
subscriptions per 100 inhabitants: 22 (July 2016 est.)
country comparison to the world: 210
Telephone system:
general assessment: adequate system
domestic: islands interconnected by shortwave radiotelephone (used mostly for government purposes), satellite (Intelsat) ground stations, and some coaxial and fiber-optic cable; mobile-cellular service available on the major islands
international: country code - 691; satellite earth stations - 5 Intelsat (Pacific Ocean); in 2015, Fiber Optic was launched and is the primary communication path to the outside world (2016)
Broadcast media:
no TV broadcast stations; each state has a multi-channel cable service with TV transmissions carrying roughly 95% imported programming and 5% local programming; about a half-dozen radio stations (2009)
Internet country code:
.fm
Internet users:
total: 33,000
percent of population: 31.5% (July 2016 est.)
country comparison to the world: 203

Transportation

Civil aircraft registration country code prefix:
V6 (2016)
Airports:
6 (2013)
country comparison to the world: 173
Airports - with paved runways:
total: 6
1,524 to 2,437 m: 4
914 to 1,523 m: 2 (2017)
Roadways:
total: 388 km
paved: 184 km
unpaved: 204 km (2015)
country comparison to the world: 201
Merchant marine:
total: 88
by type: bulk carrier 2, general cargo 63, oil tanker 6, other 17 (2017)
country comparison to the world: 91
Ports and terminals:
major seaport(s): Colonia (Tamil Harbor), Molsron Lele Harbor, Pohnepi Harbor

Military & Security

Military branches:
no regular military forces (2012)
Military - note:
defense is the responsibility of the US

Transnational Issues

Disputes - international:
none
Illicit drugs:
major consumer of cannabis

Economic Indicators for Federated States of Micronesia including actual values, historical data, and latest data updates for the Federated States of Micronesia economy.