Asia Regional Integration Center

In March 2018, tropical depression Jelawat brought flooding and landslides to Pohnpei, damaging roads and other critical infrastructure. Reconstruction stimulus partly offset the disaster’s economic impact, keeping FY2018 growth fairly solid at 2.0%, albeit down from 2.4% in FY2017. Administrative support from the US helped overcome some constraints on implementation capacity. GDP growth is projected to rise to 2.7% in FY2019 as capital spending increases in accordance with the Infrastructure Development Plan, FY2016–FY2025. More growth could come from greater consumption on expectations of lower fuel prices and stable prices for imported food. Growth is projected to taper slightly to 2.5% in FY2020 as some capital projects near completion.