Marshall Islands Economy - 2005

Economy - overview:
US Government assistance is the mainstay of this tiny island economy. Agricultural production, primarily subsistence, is concentrated on small farms; the most important commercial crops are coconuts and breadfruit. Small-scale industry is limited to handicrafts, tuna 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 Amended Compact of Free Association, the US will provide millions of dollars per year to the Marshall Islands (RMI) through 2023, at which time a Trust Fund made up of US and RMI contributions will begin perpetual annual payouts. Government downsizing, drought, a drop in construction, the decline in tourism and foreign investment due to the Asian financial difficulties, and less income from the renewal of fishing vessel licenses have held GDP growth to an average of 1% over the past decade.

GDP:
purchasing power parity - $115 million (2001 est.)

GDP - real growth rate:
1% (2001 est.)

GDP - per capita:
purchasing power parity - $1,600 (2001 est.)

GDP - composition by sector:
agriculture: 14%
industry: 16%
services: 70% (2000 est.)

Labor force:
28,700 (1996 est.)

Labor force - by occupation:
agriculture 21.4%, industry 20.9%, services 57.7%

Unemployment rate:
30.9% (1999 est.)

Population below poverty line:
NA

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
2% (2001 est.)

Budget:
revenues: $42 million
expenditures: $40 million, including capital expenditures of NA (1999)

Agriculture - products:
coconuts, tomatoes, melons, taro, breadfruit, fruits; pigs, chickens

Industries:
copra, tuna processing, tourism, craft items from shell, wood, and pearls

Industrial production growth rate:
NA

Exports:
$9 million f.o.b. (2000)

Exports - commodities:
copra cake, coconut oil, handicrafts, fish

Exports - partners:
US, Japan, Australia, China (2000)

Imports:
$54 million f.o.b. (2000)

Imports - commodities:
foodstuffs, machinery and equipment, fuels, beverages and tobacco

Imports - partners:
US, Japan, Australia, NZ, Singapore, Fiji, China, Philippines (2000)

Debt - external:
$86.5 million (FY99/00 est.)

Economic aid - recipient:
more than $1 billion from the US, 1986-2002

Currency (code):
US dollar (USD)

Exchange rates:
the US dollar is the legal tender