AEIR 2021

Micronesia, Federated States of

GDP growth recovered to 3.0% in FY2019 on increased public investment and private sector activity following severe flooding in FY2018. Fishing license revenues remained high for the third consecutive year—at over $70 million accounting for 17.0% of GDP. Moreover, corporate income taxes from foreign insurance and investment companies bolstered the FSM Trust Fund, including $43 million contributed during the year and $12 million in investment returns. Economic growth is projected to slow to 1.6% in FY2020 as election-related stimulus wanes and construction delays affect ongoing projects because of restricted mobility for labor and imported capital equipment as a result of the COVID-19 pandemic. Resuming work on these projects should support higher growth in FY2021.

Source: Asian Development Outlook 2020, ADB
Latest Month-Ago Year-Ago
Headline Inflation Rate 1 2.4 (Dec18)1.2
Merchandise Export Growth 1 47.2 (Nov20)47.2 149.9
Exchange Rate Index 2 100.0 (Feb21)100.0 100.0
1 y-o-y, %.
2 Monthly average, January 2006 = 100, $/local currency.
Source: .

Initiatives / FTAs