Federated States of Micronesia and ADB

In the Spotlight

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.


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Projects in Federated States of Micronesia