Asian Development Bank and Marshall Islands: Fact Sheet

Abstract

Updated yearly, this ADB Fact Sheet provides social and economic indicators on the Marshall Islands as well as concise information on ADB's operations in the country and contact information. The election of a new president of the Republic of the Marshall Islands in October 2009 ended 12 months of political turmoil. Notwithstanding some underlying tensions, the situation has stabilized and a national election is set to take place toward the end of 2011. The change to a new coalition government reflects a shift in political power between interest groups rather than any fundamental policy differences. The development of the Marshall Islands has continued to be affected by external shocks of the global economic downturn and unprecedented food and fuel price rises. Economic output stagnated with no growth in the nation’s gross domestic product (GDP) in 2009, while the fiscal position worsened significantly due to the combined impact of tax exemptions for diesel and basic food imports the government granted in 2008 to alleviate the effects of the global downturn, job cuts at the local United States (US) military base, and a continued weakness in expenditure control, particularly with respect to the public service wage bill and subsidies to state-owned enterprises. Gross Official Reserves, as of September 2009, was equal to 0.3 months of imports. This has left no room for the Marshall Islands to respond to further external shocks.