Country Economic Review: Micronesia
Asian Development Bank | November 2000
Abstract
During the current Compact of Free Association with the United States (US) that dates from 1987, economic growth in the Federated States of Micronesia (FSM) has averaged a 1.9 percent rate of annual increase in gross domestic product (GDP). Taking into account the population growth of 2.0 percent, GDP per capita declined during this period. At the beginning of the Compact, the FSM was endowed with a weak policy environment, which was inward looking, not conducive for private sector development, and supported a large Government. Supported by large external transfers, the economy initially boomed and grew by over 4 percent annually between fiscal year (FY)1987-FY1995, with the private sector growing by 7.1 percent as a modern cash economy established itself in nontraded activities. However, this period was not to be long-lived.
Citation
Asian Development Bank. 2000. Country Economic Review: Micronesia. © Asian Development Bank. http://hdl.handle.net/11540/6338.Keywords
Economic Crisis
Economic Efficiency
Economic Policies
Regional Economic Development
Public Sector Wages
Crisis
Unemployment
Economic cooperation
Gross domestic product
Employment
Wage payment systems
Wages
Financial crisis
Labor economics
Regional economics
Guaranteed annual wage
Wage differentials
Wages and labor productivity
Show allCollapse