Federated States of Micronesia and ADB
In the Spotlight
Government revenues in the Federated States of Micronesia are expected to be 11% higher in 2016, likely to be driven by external grants and increased collections from fishing licenses. Download the latest Pacific Economic Monitor
ADB’s interventions in the Pacific should help countries reduce the high cost of doing business and providing services, develop capacity to manage risks from economic shocks, natural disasters, and climate change, as well as promote the creation of competitive high value-added goods and services.
Trust Funds and Fiscal Risks in the North Pacific: Sustainability in the Federated States of Micronesia
Analysis shows future revenues from trust funds will likely be volatile and unsustainable, but simple rule changes may reduce fund volatility and improve the sustainability of fund balances. This publication analyzes the trust funds established by the United States with the Republic of Marshall Islands and the Federated States of Micronesia.
The economic outlook for FY2016 is brighter, as recovery in agriculture and the scaling up of infrastructure projects are projected to support higher growth. However, growth is expected to be less than projected in ADO 2015 as capacity constraints may hinder reconstruction.
Despite robust growth of the fishery sector, the economy of the Federated States of Micronesia (FSM) has stagnated for many years, with private sector activities unable to offset a decline in public investment, which has resulted from the reduction in grants from the Compact of Free Association with the United States (the Compact). Critical importance has been placed on developing the FSM’s private sector, and achieving medium-term fiscal sustainability, to ensure sufficient resources are available to prepare for the planned expiration of Compact grants in the financial year 2023.
The government formulated its ongoing development framework in 2012. It highlights the importance of having ownership of the development process at the national and state levels, accompanied by well-coordinated, sector-based support from development partners. ADB continues to support this initiative in close coordination with other partners.
Projects in Federated States of Micronesia
No projects in this category were found.