Economy - overview US Government assistance is the mainstay of the economy, constituting an important supplement to GDP. Agricultural production is concentrated on small farms, and the most important commercial crops are coconuts, tomatoes, melons, and breadfruit. Small-scale industry is limited to handicrafts, fish processing, and copra. The tourist industry, now a small source of foreign exchange employing less than 10% of the labor force, remains the best hope for future added income. The islands have few natural resources, and imports far exceed exports. The government is drafting economic reforms designed to increase revenue and compensate for reductions in US Government grants - in FY95/96, the US Government provided grants of $68 million, equal to roughly 70% of the country's GDP. More than 25% of the government's FY95/96 budget was devoted to debt repayment. In 1996, efforts to stabilize the economy included a 27% reduction in the government's work force and a 10% cut in the budget.

GDP purchasing power parity - $98 million (1996 est.)

GDP - real growth rate 2% (1996 est.)

GDP - per capita purchasing power parity - $1,680 (1996 est.)

GDP - composition by sector
agriculture: 15%
industry: 13%
services: 72% (1995)

Inflation rate - consumer price index 4% (FY95/96)

Labor force
total: 4,800 (1986)
by occupation: NA

Unemployment rate 16% (1991 est.)

Budget
revenues: $80.1 million
expenditures: $77.4 million, including capital expenditures of $19.5 million (FY95/96 est.)

Industries copra, fish, tourism, craft items from shell, wood, and pearls, offshore banking (embryonic)

Industrial production growth rate NA%

Electricity - capacity 16,000 kW (1994)

Electricity - production 57 million kWh (1994)

Electricity - consumption per capita NA kWh

Agriculture - products coconuts, cacao, taro, breadfruit, fruits; pigs, chickens

Exports
total value: $17.5 million (f.o.b., 1996 est.)
commodities: fish, coconut oil, fish, trochus shells
partners: US, Japan, Australia

Imports
total value: $71.8 million (c.i.f., 1996 est.)
commodities: foodstuffs, machinery and equipment, fuels, beverages and tobacco
partners: US, Japan, Australia, NZ

Debt - external $128 million (FY95/96)

Economic aid
recipient: under the terms of the Compact of Free Association, the US is to provide approximately $68 million in aid annually

Currency 1 United States dollar (US$) = 100 cents

Exchange rates US currency is used

Fiscal year 1 October - 30 September

NOTE: The information regarding Marshall Islands on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Marshall Islands Economy 1998 information contained here. All suggestions for corrections of any errors about Marshall Islands Economy 1998 should be addressed to the CIA.