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Federated States of Micronesia: Economic Outline

Economic Indicators

During the last recent years, the Micronesian economy's performance has been poor. Due to an increase in the price of goods, an unfavorable business climite and difficulties in disbursing the funds of the American help, Micronesia has gone through five years of recession. An growth rate of  0.5% is expected in 2010 and the medium term perspectives are not favorable. 

The priorities of the Micronesian government are to control the effects of the global economic crisis, to establish the required measures to reduce its budget deficit and to try to set free from its dependence on American aid which will expire in 2023. Structural reforms to stimulate the private sector and to improve the business environment are currently taking place. 

Unemployment affects more than one fifth of the population and more than 20% of the population is living below the poverty line.

 

Learn more about Market Analysis about the Federated States of Micronesia on Globaltrade.net, the Directory for International Trade Services.

 

Indicator of Economic Freedom

Score:

50.3/100

Position:

Mostly unfree

World Rank:

140/179

Regional Rank:

31/38

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

Indicator of Political Freedom

Ranking:

Free

Political Freedom:

1/7

Civil Liberties:

1/7

Map of freedom 2010
Source: Freedom House

 

Sources of General Economic Information

Main Online Newspapers and Portals

Micronesia News Sites and Newspapers
Micronesia Newspapers and News Media Guide
News from Micronesia

Useful Resources

Government of the Federated State of Micronesia
Central Bank

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Last Updates: February 2012