Overview: Economic activity consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting, except for high-grade phosphate. 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 US is the primary source of revenue, with the US pledged to spend $1 billion in the islands in the l990s. Geographical isolation and a poorly developed infrastructure are major impediments to long-term growth.

National product: GNP - purchasing power equivalent - $150 million (1989 est.)

note: GNP numbers reflect US spending

National product real growth rate: NA%

National product per capita: $1,500 (1989 est.)

Inflation rate (consumer prices): NA%

Unemployment rate: NA%

Budget: revenues $165 million; expenditures $115 million, including capital expenditures of $20 million (1988)

External debt: $NA

Industrial production: growth rate NA%

Electricity: 18,000 kW capacity; 40 million kWh produced, 380 kWh per capita (1990)

Industries: tourism, construction, fish processing, craft items from shell, wood, and pearls

Agriculture: mainly a subsistence economy; black pepper; tropical fruits and vegetables, coconuts, cassava, sweet potatoes, pigs, chickens

Economic aid: under terms of the Compact of Free Association, the US will provide $1.3 billion in grant aid during the period 1986-2001

Currency: US currency is used

Exchange rates: US currency is used

Fiscal year: 1 October-30 September