Federated States of Micronesia and ADB
In the Spotlight
With average growth in the Pacific now projected at 2.7% in 2016 and 3.3% in 2017 — the lowest since the global financial and economic crisis — policies to reinvigorate and sustain economic activity need to be prioritized, according to the ADB's December 2016 issue of the Pacific Economic Monitor.
The Pacific Private Sector Development Initiative—a regional technical assistance facility cofinanced by ADB, the Government of Australia, and the Government of New Zealand—has undertaken landmark secured transaction reforms in eight Pacific Island countries, including the Federated States of Micronesia. These reforms have unlocked the value in “movable” assets such as machinery, inventory, and accounts receivable for use as collateral in borrowing.
The resumption of public investments has helped the economy attain 1.4% growth in FY2015, following 3 years of economic contraction. Stimulus from construction under compact infrastructure grants will support growth in the near term. Read more from Asian Development Outlook 2016 Update
ADB has scaled up its assistance to Pacific countries from about $500 million in 2004 to more than $2 billion by the end of 2015, supporting the construction of infrastructure such as transport, energy, water and sanitation, and information and communication technology.
Having been devastated by typhoons in 2015, and with a stagnating economy, the Federated States of Micronesia (FSM) faces significant development challenges.
While its fisheries subsector has seen robust growth, private sector activities have been unable to offset the decline in public investment resulting from a reduction in grants from the Compact of Free Association with the United States (the Compact). Development support has focused on stimulating the FSM’s private sector and on achieving medium-term fiscal sustainability, to ensure sufficient resources are available as the expiration of Compact grants in the financial year (FY) 2023 approaches. In 2015, the FSM’s National Congress endorsed the Action Plan 2023 as a road map to address the fiscal and economic challenges leading up to, and beyond, FY2023.
ADB has historically supported good governance in the FSM, with a focus on economic management and accountability, while also promoting development of the country’s social and private sectors.
Projects in Federated States of Micronesia
No projects in this category were found.
Maternal mortality ratio in Micronesia, per 100,000 live births (2015)
Population in Micronesia, in millions (2015)
Internet users in Micronesia, per 100 population (2014)
Average annual population growth rate in Micronesia (2010-2015)