Federated States of Micronesia and ADB
In the Spotlight
Growth in the North Pacific is expected to rise in the near term due to favorable external conditions, stimulus from infrastructure projects, and continued tourism growth in Palau, says a new report from ADB.
ADB-wide sovereign approvals in the Pacific has risen substantially since 2010, reaching almost $1.8 billion in 2013. ADB is assessing and updating the Pacific Approach, which will continue to guide its operations in the region.
The government and the people of the Federated States of Micronesia (FSM) have been working with ADB since 1990. The FSM has achieved important development gains since it become a full-fledged member of the United Nations in 1991. ADB has helped the government build the foundations of this reform.
Despite robust growth of the fishery sector, the overall economic outlook for the Federated States of Micronesia (FSM) remains challenging, as private sector activities are yet to offset declining public investments resulting from reductions of financing from Compact grants.
ADB operations support the country’s development priorities, which aim to establish a solid foundation for sustainable growth and medium-term fiscal sustainability.