Part 493

Flag: light blue with four white five-pointed stars centered; the stars are arranged in a diamond pattern

Economy -------

Economic overview: Economic activity consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting, except for high-grade phosphate. The potential for a tourist industry exists, but the remoteness of the location and a lack of adequate facilities hinder development. Financial assistance from the US is the primary source of revenue, with the US pledged to spend $1 billion in the islands in the 1990s. Geographical isolation and a poorly developed infrastructure are major impediments to long-term growth.

GDP: purchasing power parity - $205 million (1994 est.) note: GDP is supplemented by grant aid, averaging perhaps $100 million annually

GDP real growth rate: 1.4% (1994 est.)

GDP per capita: $1,700 (1994 est.)

GDP composition by sector: agriculture: NA% industry: NA% services: NA%

Inflation rate (consumer prices): 4% (1994 est.)

Labor force: NA by occupation: two-thirds are government employees

Unemployment rate: 27% (1989)

Budget: revenues: $45 million expenditures: $31 million, including capital expenditures of $NA (FY94/95 est.)

Industries: tourism, construction, fish processing, craft items from shell, wood, and pearls

Industrial production growth rate: NA%

Electricity: capacity: 18,000 kW production: 40 million kWh consumption per capita: 380 kWh (1990)

Agriculture: black pepper, tropical fruits and vegetables, coconuts, cassava (tapioca), sweet potatoes; pigs, chickens

Exports: $29.1 million (f.o.b., 1994 est.) commodities: fish, garments, bananas, black pepper partners: Japan, US, Guam

Imports: $141.1 million (c.i.f., 1994 est.) commodities: food, manufactured goods, machinery and equipment, beverages partners: US, Japan, Australia

External debt: $129 million

Economic aid: recipient: under terms of the Compact of Free Association, the US will provide $1.3 billion in grant aid during the period 1986-2001

Currency: 1 United States dollar (US$) = 100 cents

Exchange rates: US currency is used

Fiscal year: 1 October - 30 September

Transportation --------------

Railways: 0 km

Highways: total: 226 km paved: 39 km unpaved: 187 km

Ports: Colonia (Yap), Kolonia (Pohnpei), Lele, Moen

Merchant marine: none

Airports: total: 5 with paved runways 1 524 to 2 437 m: 4 with paved runways under 914 m: 1 (1995 est.)