Short facts about the economy in Marshall Islands
| Economy -
overview: |
US Government assistance is the
mainstay of this tiny island economy. Agricultural production is concentrated on
small farms, and the most important commercial crops are coconuts, tomatoes,
melons, and breadfruit. Small-scale industry is limited to handicrafts, fish
processing, and copra. The tourist industry, now a small source of foreign
exchange employing less than 10% of the labor force, remains the best hope for
future added income. The islands have few natural resources, and imports far
exceed exports. Under the terms of the Compact of Free Association, the US
provides roughly $65 million in annual aid. Negotiations were underway in 1999
for an extended agreement. Government downsizing, drought, a drop in
construction, and the decline in tourism and foreign investment due to the Asian
financial difficulties caused GDP to fall in
1996-98. |
| GDP: |
purchasing power parity - $105 million
(1998 est.), supplemented by approximately $65 million annual US
aid |
| GDP - real
growth rate: |
-5% (1998
est.) |
| GDP - per
capita: |
purchasing power parity - $1,670 (1998
est.) |
| GDP -
composition by sector: |
agriculture:
15%
industry: 13%
services: 72%
(1995) |
| Population
below poverty line: |
NA% |
| Household
income or consumption by percentage share: |
lowest 10%:
NA%
highest 10%: NA% |
| Inflation
rate (consumer prices): |
5%
(1997) |
| Labor force
- by occupation: |
agriculture NA%, industry NA%, services
NA% |
| Unemployment
rate: |
16% (1991
est.) |
| Budget: |
revenues: $80.1
million
expenditures: $77.4 million, including capital
expenditures of $19.5 million (FY95/96 est.) |
| Industries: |
copra, fish, tourism, craft items from
shell, wood, and pearls, offshore banking
(embryonic) |
| Industrial
production growth rate: |
NA% |
| Electricity
- production by source: |
fossil fuel:
NA%
hydro: NA%
nuclear: NA%
other:
NA% |
| Agriculture
- products: |
coconuts, tomatoes, melons, cacao,
taro, breadfruit, fruits; pigs, chickens |
| Exports: |
$28 million (f.o.b., 1997
est.) |
| Exports -
commodities: |
fish, coconut oil, trochus
shells |
| Exports -
partners: |
US, Japan,
Australia |
| Imports: |
$58 million (f.o.b., 1997
est.) |
| Imports -
commodities: |
foodstuffs, machinery and equipment,
fuels, beverages and tobacco |
| Imports -
partners: |
US, Japan, Australia, NZ, Guam,
Singapore |
| Debt -
external: |
$125 million (FY96/97
est.) |
| Economic aid
- recipient: |
approximately $65 million annually from
the US |
| Currency: |
US dollar
(USD) |
| Exchange
rates: |
the US dollar is
used |
| Fiscal
year: |
1 October - 30 September | Source: World Factbook |
