Federated States of Micronesia and ADB
In the Spotlight
The growth outlook for developing Asia and the Pacific remains steady, even though momentum slowed in the second half of 2014, but the declining oil prices represent a golden opportunity for many beneficial reforms, ADB says in a new report.
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 Pacific region is benefitting from stronger links with Asia’s growing economies, and can gain more with targeted policy reforms and investments, according to ADB's Pacific Economic Monitor.
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. The FSM government and ADB are together placing particular importance on private sector development to put the economy on a higher growth path. The FSM also needs to prepare a medium-term fiscal reform plan to ensure sufficient fiscal resources upon the planned expiration of the Compact grants in fiscal year 2023.
0.1(2013) Population in millions
0.1%(2008-2013) Average annual population growth rate
31.4(2005) Percent of population living below the national poverty line