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Micronesia (Fed. States) Micronesia (Fed. States)

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Micronesia (Fed. States)

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EconomicPoliticalStructural

Micronesia (Fed. States) – Quick View
ECR score0 (Mar 2011)
ECR rank186 (Mar 2011)
Economic
GDP 2010USD 0.30 billion
GNI per capita PPP 2010USD 3,266
FDI inflow 2010 (E)USD 0.6 million
Inflation 2011 (P)2%
Central bank assets 2008USD 36.23 million
Unemployment rateNA
Government Fiscal Balance 2010 (E)USD 1 million
Tax revenue 2010 (E)USD 34.20 million
Political
Government typeConstitutional Confederation
Recent political crisisNA
Economic freedom score 2011145th
Freedom of information score 2010NA
Corruption perception index 2010NA
Structural
Crude birth rate 200925%
Population balance 2009Under 14 - 37%
Population balance 2009Over 64 - 4%
Life expectancy 2010Male – 67.7 years
Life expectancy 2010Female – 69.3 years
Mortality rate 201034.1 per ‘000
Literacy rate 201092%
Internet access 201015.8%

[Top] Economic Overview

The Federated States of Micronesia has an economy that mainly depends on industries such as fishing, tourism and agriculture. Micronesia’s main export products are fish, betel nut and kava and import food, fuel and manufactured goods. In recent years, the private sector of Micronesia has experienced slow growth. Fishing and farming are the traditional occupations which mainly contribute to the livelihood of Micronesia's population.

(Source: economy watch)

 

Gross domestic product (GDP)

The GDP in Micronesia grew steadily in 2006 from USD 0.24 billion to USD 0.27 billion in to 2009. In, 2010 the Micronesia’s GDP was USD 0.30 billion.

Micronesia (Fed. States) GDP

 

(Source: worldbank, heritage)

GDP growth

The GDP growth rate of Micronesia (Federated States of) has fluctuated, varying from a high 0.50% projected for 2011 to a low of -2.30% in 2008.

Micronesia (Fed. States) GDP growth rate

 

(Source: IMF page 24) E – Estimated, P - Projected

GNI per capita at PPP

The GNI per capita at PPP in Micronesia has been on a steady decline since 1995 from USD 3,537 to USD 3,266 in 2010.

 

Micronesia (Fed. States) GNI per capita at PPP

(Source: undp)

Income tax rate

The income tax rate in Micronesia (Federated States of) is 10%.

(Source: economywatch)

Corporate tax

Corporate tax in Micronesia is 3%, VAT is 3% and sales tax is 8%.

(Source: economywatch)

Inflation rate

The inflation rate in Micronesia (Federated States of) in recent years has varied from a high of 7.7% in 2009 to a low projected 2% in 2011.

Micronesia (Fed. States) Inflation rate

 

(Source: IMF page 24) E – Estimated, P - Projected

FDI Inflow

FDI inflow increased from USD 0.1 million in 2006 to an estimated USD 0.6 million in 2010. Micronesia’s FDI inflow was highest in 2009 and 2010 (E) at USD 0.6 million.

Micronesia (Fed. States) FDI net inflows

 

(Source: IMF page 23) E – Estimated

Portfolio investment inflow

The Portfolio investment inflow to Micronesia in 2010 was USD -21 million.

Micronesia (Fed. States) Portfolio Investment inflow

 

(Source: IMF page 23) E – Estimated

Banking sector assets

The table below shows the assets of the Bank of Micronesia:

Bank of Micronesia (USD million)

 

2008

2007

Total current assets

7,337,839

4,399,766

Total noncurrent assets

28,900,915

31,436,224

Total assets

36,238,754

35,835,990

(Source: Bank of Micronesia page 23)

[Top] Financial Indicators & Government Financial

Consumer price index

The CPI in Micronesia (Federated States of) rose steadily between Q1 2006 and Q4 2007, reaching a maximum at 120.4 in Q4 2007 and a minimum of 112.3 in Q1 2006.

 

Micronesia (Fed. States) CPI

(Source: national statistics page 84)

 

Interest rate on saving and time deposit

Interest Rates

 

December 2007

December 2006

Savings Deposits

1.88

1.88

Time Deposits

3.15

2.08

(Source: national statistics page 73)

Money supply

Money Supply (USD million)

 

2008

2007

Money

21.21

22.45

Quasi Money

76.80

72.49

(Source: econstats)

 

Government expenditure

Government spending fluctuated between 2006 from USD 152.80 million to USD 171.70 million in 2010. Government expenditure in 2010  decreased by -3.79% over 2009.

Micronesia (Fed. States) total expenditure

 

(Source: IMF page 21) E – Estimated

Public debt

In 2010 public debt was USD 79.20 million. The public debt in 2010 decreased by -1.64% over 2009

Micronesia (Fed. States) total external debt

 

(Source: IMF page 22)

Official exchange rate

The dollar rate per EUR in 2010 was 1.33. The exchange rate in 2009 was 1.44 USD per EUR.

Micronesia (Fed. States) Exchange rate

 

(Source: European Central Bank)

 

Government finances

Fiscal balance

The fiscal deficit in 2010 was USD 1 million.

Micronesia (Fed. States) Fiscal balance

 

(Source: IMF page 21)

Total revenue

Total revenue increased between 2007 and 2010. Micronesia's total revenue reached a maximum in 2010 at USD 61.30 million and a minimum in 2007 of USD 52.80 million.

Micronesia (Fed. States) Total revenue

 

Source: IMF page 21)

Tax revenue

Micronesia’s tax revenue reached a maximum in 2010 at USD 34.20 million and minimum in 2006 of USD 29.70 million.

Micronesia (Fed. States) Tax revenue

 

(Source: IMF page 21)

Total grants

Micronesia’s total grants reached a maximum in 2009 at USD 123.50 million and minimum in 2006 of USD 84.80 million.

Micronesia (Fed. States) Total grants

 

(Source: IMF page 21)

Current account balance

The current account balance in Micronesia (Federated States of) was in deficit of USD 53 million in 2010.

Micronesia (Fed. States) Current account balance

 

(Source: IMF page 21)

 

Balance of payments

Balance of Payments

 

2010 (E)

2009

Current Account Balance

-53.0

-51.4

Capital Account Balance

63.1

70.1

Financial Account Balance

-11.4

-24.6

Overall balance

-1.3

-5.9

(Source: IMF page 23)

[Top] Labour Force and Employment Overview

Unemployment rate

There is no reliable data for the unemployment rate in Micronesia.

(Source: estandardsforum, adb,worldbank)

Minimum wage

The minimum wage rates in Micronesia are different in different states. Pohnpei had a minimum hourly wage rate of USD 1.35 for private-sector workers and USD 2.00 for government workers. The other three states i.e. Chuuk, Yap, and Kosrae have established minimum hourly rates only for government workers: USD 1.25 for Chuuk, USD 1.49 for Kosrae, and USD 0.80 for Yap. The minimum hourly wage for employment with the national government was USD 2.64.

(Source: state.gov)

Level of unionisation

There are no trade unions in Micronesia.

(Source: enotes)

[Top] Political Stability

Government stability

The government system in Micronesia (Federated States of) is a constitutional confederation which is in free association with the United States. It has three branches, the executive, the judiciary and the legislature. Micronesia is headed by the president. The president and the prime minister are elected by the congress of the FSM who serves for a term of 4 years. It has a unicameral Congress of the Federal States of Micronesia (FSM).

Micronesia's current president is Mr. Emanuel Mori and the vice president is Mr. Alik L. Alik.

There are no formal political parties in Micronesia.

(Source: national gov, traveldocs, national gov)

Regulatory environment

Micronesia’s economic freedom score is 50.3, ranking it as 145th freest country in 2011 Index.

Micronesia (Fed. States) Economic Freedom Indices

 

(Source: heritage.org)

Corruption perception

Micronesia (Federated States of) is not included in the corruption index of 2010.

(Source: transparency.org)

 

Freedom of Information

Micronesia (Federated States of) is not included in the World Press Freedom Index 2010. Micronesia’s press system is highly regionalised and newspapers are privately owned.

The main newspapers in Micronesia (Federated States of) are:

·         The National Union

·         The Island Tribune

·         Pohnpei Business News

·         Micronesia Weekly

(Source: BBC, rsf)

Judicial system

The Judiciary in Micronesia (Federated States of) is well organized and regulated. It is independent from the government. The Supreme Court of Micronesia (Federated States of) is  the highest level court in Micronesia. The judiciary system of in Micronesia is divided into two divisions, the trial and appellate divisions and consists of three justices. This justices are nominated by the president for a lifetime appointment and confirmed by the Congress FSM.

(Source: national gov)

[Top] Demographic Overview

The total population of Micronesia (Federated States of) in 2010 was 0.1 million compared to 110,728 in 2009.

(Source: undp page 181, worldbank)

Micronesia (Fed. States) Population by gender

 

In, 2009 the male population in Micronesia was 51% of the total population and female population was 49% of the total population.

(Source: worldbank)

In 2009, the population in Micronesia below the age of 14 accounted for 37%, whereas people in aged 65 years and above accounted for 4%.

(Source: worldbank, worldbank)

 

In 2010, 22.7% of the population was classified as urban. In 2009 Micronesia's urban population was 25,046.7.

(Source: undp page 181, worldbank)

In 2010, the male population in Micronesia had 107.2 male births (per 100 female births) and a median age of 20.8 years.

(Source: undp page 181)

In 2010, the infant mortality rate in Micronesia (Federated States of) was 34.1 (per ‘000) and the average life expectancy at birth in Micronesia (Federated States of) was 69 years. Life expectancy for women was 69.3 years and 67.7 years for men.

(Source: undp, UN)

The crude birth rate in Micronesia (Federated States of) in 2009 was 25%.

(Source: UNICEF)

The main ethnic groups in Micronesia (Federated States of) are of Catholic, Protestant denominations and of other religions.

(Source: state.gov)

The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education). Micronesia ranked 103th out of 169 countries on the Human Development index 2010 conducted by the United Nations.

(Source: undp page 138)

[Top] Soft Infrastructure

Education/literacy rate

In 2010, Micronesia's literacy rate for the working population was 92%.

(Source: estandardsforum)

Education System

The education system in Micronesia provides free public education for the 6-15 year age group. Apart from the public schools, the religious groups around Micronesia also run private secondary and elementary schools.

The school system in Micronesia is not in a good state. School buildings are plagued by poor infrastructure. There is also shortage of teaching aids. Micronesia's post secondary education includes the College of Micronesia, the University of Guam and other US colleges which help its students.

The primary-secondary gross enrolment ratio between 2005-2008 for women was 98.7 (per 100 females) and was 96.8 (per 100 males) fro men.

The expenditure on education in 2000 was 7.3% of Micronesia’s GDP.

(Source: UNDP, UN, UNICEF)

Healthcare resources

The common health diseases affecting Micronesia’s population are skin infections, diarrhea, respiratory infections, dental problems, gynaecological infections, parasitic infections and mental health concerns.

There are approximately 230 nurses and midwives, 60 physicians, 20 dentists, 10 pharmacists and 330 hospital beds for every 100,000 people.

Cardiovascular diseases were mainly responsible for causing deaths in Micronesia. Cardiovascular diseases were responsible for 33.3% of all deaths, while cancer had a 16.7% contribution. The mortality rate (per 100,000) for cardiovascular diseases was 128.1, 51.5 for digestive disorders, for cancer it was 69.2 and for diabetes 50.3.

The expenditure on health in 2007 was 12.6% of Micronesia's GDP.

 (Source: undp, UNICEF, peacecorpswiki, estandardsforum)

[Top] Hard Infrastructure

The main mode of public transport in Micronesia is road, railway and air travel. The roadway length in Micronesia (Federated States of) is 240 km.

(Source:bymap)

Ports

There are 2 ports in Micronesia Dekehtik Pohnpei Harbour and Yap Tomil Harbour.

(Source:world port source)

Airports

There are 8 airports in Micronesia which are as follows:

Town

Airport name

Runway length (ft)

Angaur I

Angaur Airstrip

7,000

Babelthuap I

Babelthuap/Koror

7,200

Babelthuap I

Peleliu

6,000

Kosrae I

Kosrae

5,700

Pohnpei I

Pohnpei Intl

6,000

Ulithi I

Ulithi

3,300

Weno I

Chuuk Intl

6,000

Yap I

Yap Intl

6,000

(Source:aircraft-charter-world)

Telecommunications networks

In 2010, the total number of internet users was approximately 17,000 and the internet penetration rate of the population was 15.8%.

Mobile cellular subscriptions and fixed telephone lines

 

Mobile cellular subscriptions

Fixed telephone lines

2009

38,000

8,700

2008

34,000

8,700

2007

27,436

8,697

2006

18,616

8,917

2005

14,094

12,449

(Source:internetworldstats, ITU, ITU)

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