Economics and statistics

The Federated States of Micronesia is an ultra-small island economy (population of about 100-110 thousand) using the US dollar.

Budget and GDP largely depend on grants under the Compact of Free Association (COFA), licenses for industrial fishing in the EEZ (PNA/VDS mechanism), public sector and services; tourism is small due to the remoteness and expensive logistics.

The economy is import-dependent, the trade balance is chronically scarce, migration and diaspora transfers are noticeable.

The main vulnerabilities are climate risks and fuel/food price shocks; priorities are basic infrastructure, communications, skills and income diversification.

There is no gambling sector (casino/betting), so the contribution to GDP and budget is negligible/zero.