Economic data released after the Asian Development Outlook (ADO) 2017 was published in April show that the economy contracted by 0.1% in FY2016. Growth is projected to return in FY2017 but below the ADO 2017 forecast. The downward revision partly reflects the temporary suspension of infrastructure grants for new projects under the compact with the United States after the Federated States of Micronesia failed to establish an adequate project management system. Read more from Asian Development Outlook 2017 Update
Note: GDP growth rate forecasts for 2017 and 2018.