Business Profile
Economy
Subsistence farming and fishing are of declining importance as tourism has come to dominate the domestic economy and fishing is largely pursued by foreign commercial concerns operating under licence. Mineral resources are limited to a few high-grade phosphate deposits. Sales of these licences account for over one-third of national income. Aid from the USA has been a vital source of income: under the Compact of Free Association between the islands and the USA, Micronesia received US$1.3 billion in bilateral aid over the 15-year period up to 2001. Much of this was sunk into infrastructure projects, principally an airport and harbour on each of the main islands. However, the end of this subvention has depressed the economy and, with few other immediate options, Micronesia’s economic prospects are at best uncertain. The Federated States of Micronesia is a member of the South Pacific Commission and the South Pacific Forum.
Conferences/Conventions
For further information, contact FSM Visitors Board (see Contact Addresses section); or the Pohnpei State Chamber of Commerce, PO Box 405, 96941, Pohnpei, Kolonia (tel: 320 2452; fax: 320 5277).
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