Federated States of Micronesia - Economy

Economy

Economic activity in the Federated States of Micronesia consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting, except for high-grade phosphate. Long line tuna fishing is also viable with foreign vessels from China operated in the 1990s. The potential for a tourist industry exists, but the remoteness of the location and a lack of adequate facilities hinder development. Financial assistance from the U.S. is the primary source of revenue, with the U.S. pledged to spend $1.3 billion in the islands in 1986–2001. Geographical isolation and a poorly developed infrastructure are major impediments to long-term growth.

The nation uses the U.S. dollar as its currency.