AEIR 2021

The economy significantly slowed to 1.0% in FY2019 from a re-estimated 5.7% growth in FY2018 as activity slowed at the Regional Processing Centre (RPC), an Australian-funded facility for asylum seekers, and phosphate output declined. The fiscal surplus narrowed to 16.0% of GDP in FY2019 despite a 44.8% increase in fishing license revenue and higher revenues from the RPC. Economic growth is expected to slip further to 0.4% in FY2020 but recover to 1.1% in FY2021. Phosphate exports are expected to remain weak while RPC activity moderates further. The travel and trade disruption due to the COVID-19 pandemic will also contribute to the decline. Construction on a new seaport is expected to provide additional benefits to local services.

Source: Asian Development Outlook 2020, ADB
Latest Month-Ago Year-Ago
Merchandise Export Growth 1 353.9 (Nov20)353.9 417.5
Exchange Rate Index 2 103.3 (Feb21)103.3 102.9
1 y-o-y, %.
2 Monthly average, January 2006 = 100, $/local currency.
Source: .

Initiatives / FTAs