Economic growth has been volatile since the Covid-19 pandemic, and inflation reached decade-high levels mainly due to higher prices of imported food and energy. High vulnerability to climate change is also intensifying food security concerns. Despite the weak domestic economy, the fiscal and...

A virtual technical assistance (TA) mission supported by the IMF's Asia and Pacific Department (APD) was conducted by the IMF Statistics Department (STA) and the Pacific Financial Technical Assistance Centre (PFTAC) during October 25 - November 2, 2021. The mission assisted the Department of...

This timely and ambitious volume - a product of close research collaboration with the United Nations Multi-Country Office for Micronesia - is conceived as a holistic "journey" across various domains of progress in a region that, despite fundamental common traits, remains vast and diverse....

I report the measurement error in self-reported earnings for a developing country. Administrative data from the Federated States of Micronesia's (FSM) Social Security office are matched to the FSM Census data for the wage sector employed. I find that the error in annual self-reported earnings is...

The COVID-19 pandemic and related containment measures have put severe strains on the economy. The economic policy response has been strong and generally appropriate, helping counter the negative effects of the pandemic. Nevertheless, as the international borders remain shut, the economic...

The International Monetary Fund's (IMF's) Statistics Department (STA) provided technical assistance (TA) on financial soundness indicators (FSI) to the Federated States of Micronesia Banking Board (FSMBB) during November 2-13, 2020. The TA mission took place in response to a request from the...

This departmental paper provides an in-depth overview of access to climate finance for Pacific Island Countries, evaluating successes and challenges faced by countries and proposes a way forward to unlock access to climate funds

This Climate Change Policy Assessment (CCPA) takes stock of the Federated States of Micronesia (FSM)'s climate response plans, from the perspective of their macroeconomic and fiscal implications. CCPA explores the possible impact of climate change and natural disasters and the cost of FSM's...

This 2019 Article IV Consultation with Federated States of Micronesia (FSM) highlights that the economy has performed well in recent years, with relatively high growth and low inflation. Fiscal and current account balances have recorded large surpluses since 2017, owing to the authorities'...

This 2017 Article IV Consultation highlights that the Micronesian economy continued its gradual recovery in fiscal year 2016 (ending September 30), after three years of contraction during 2012-14. Real GDP is estimated to have grown by 3.0 percent in 2016, driven by increased construction...

Mean obesity level of the 2 - 8-year-old children in the region was 14.4%, 14.1% were overweight, 2.7% were underweight, 1.4% were stunted, and 6.8% were stunted at birth. Acanthosis nigricans prevalence was 5%, an indicator of pre-diabetes. Sixty-one percent of the children were Native Hawaiian...

Brain drain has long been a common concern for migrant-sending countries, particularly for small countries where high-skilled emigration rates are highest. However, while economic theory suggests a number of possible benefits, in addition to costs, from skilled emigration, the evidence base on...

Federated States of Micronesia (FSM) is a small and sparsely-populated state vulnerable to climate change. Over the medium term, the country needs to prepare for the expiration of U.S. Compact grants from FY2024 onward, adapt to climate change, facilitate sustainable private-sector growth, and...

KEY ISSUES Context. Raising growth and ensuring long-term fiscal sustainability remain the two critical issues of the FSM. The reform agenda, in particular, the tax reform package and growth-enhancing reforms, hinges on achieving a national consensus in a loosely federated nation. Outlook. The...

Growth has been sluggish in Pacific island countries (PICs). High cost of credit is likely one of the reasons. While the small scale, geographic dispersion, and vulnerability to shocks increase the cost and risk of credit in this country group, there is considerable variability in interest rate...

Growth has been sluggish in Pacific island countries (PICs). High cost of credit is likely one of the reasons. While the small scale, geographic dispersion, and vulnerability to shocks increase the cost and risk of credit in this country group, there is considerable variability in interest rate...

The Federated States of Micronesia (FSM) remains at high risk of debt distress under the Debt Sustainability Framework (DSF). Unless the compact agreement with the United States or parts of it are renewed, the FSM will face a fiscal cliff when the U.S. Compact grants amounting to 20 percent of...

The Monitor provides an update of developments in Pacific economies and explores topical policy issues.

The Monitor provides an update of developments in Pacific economies and explores topical policy issues.

The Monitor provides an update of developments in Pacific economies and explores topical policy issues.

A survey of wastewater treatment facilities in the Federated States of Micronesia revealed a lack of fully functional treatment systems and conditions that potentially could lead to adverse environmental impacts and public health concerns. Due to inadequate facilities, the amount and composition...

This statistical appendix paper for the Federated States of Micronesia (FSM) was prepared as background documentation for the periodic consultation with the member country, during the period 2004–11. This paper is based on the information available at the time it was completed on December...

The Federated States of Micronesia (FSM) is highly dependent on external aid. Following a recession in FY2006–08, the FSM economy has grown by 2–2½ percent for FY2010 and FY2011. The economy remains dependent on the large public sector, although the fisheries and agriculture...

The Federated States of Micronesia (FSM) is highly dependent on external aid. Following a recession in FY2006–08, the FSM economy has grown by 2–21⁄2 percent for FY2010 and FY2011. The economy remains dependent on the large public sector, although the fisheries and agriculture sectors have...

This statistical appendix paper for the Federated States of Micronesia (FSM) was prepared as background documentation for the periodic consultation with the member country, during the period 2004–11. This paper is based on the information available at the time it was completed on December 20,...

The Monitor provides an update of developments in Pacific economies and explores topical policy issues.

Brain drain has long been a common concern for migrant-sending countries, particularly for small countries where high-skilled emigration rates are highest. However, while economic theory suggests a number of possible benefits, in addition to costs, from skilled emigration, the evidence base on...

This Regional Partnership Framework (RPF) outlines the World Bank Group (WBG) strategic program for nine Pacific island countries (PIC9): Kiribati, the Republic of the Marshall Islands (RMI), Federated States of Micronesia (FSM), Republic of Nauru, Republic of Palau, Independent State of Samoa,...

As the Congress of the Federated States of Micronesia (FSM) prepares to debate a draft trade policy (the first in the young nation’s history) in the next few months, this is as good a time as any to review the broader economic development context in which this policy was framed and to reviews...

The economy has recovered following the stabilization of commodity and food prices. The Article IV discussions focused on policies to secure a sustained recovery and achieve long-term economic and fiscal sustainability. The recovery will likely remain weak, and the consolidated fiscal surplus is...

This statistical appendix for the Federated States of Micronesia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with wages. Consumer price index, Pohnpei consumer index, Chuuk consumer index, Kosrae consumer index, and...

The Federated States of Micronesia (FSM) has a very narrow production base, with subsistence agriculture and fisheries and the public sectors dominating the economy, both with regard to employment and value added. The contribution of institutional sectors to growth suggests that private...

Brain drain has long been a common concern for migrant-sending countries, particularly for small countries where high-skilled emigration rates are highest. However, while economic theory suggests a number of possible benefits, in addition to costs, from skilled emigration, the evidence base on...