Economy - overview US Government assistance is the mainstay of this tiny island economy. Agricultural production is primarily subsistence and is concentrated on small farms; the most important commercial crops are coconuts and breadfruit. Small-scale industry is limited to handicrafts, tuna 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. Under the terms of the Compact of Free Association, the US provides roughly $39 million in annual aid. Negotiations have continued for an extended agreement. Government downsizing, drought, a drop in construction, the decline in tourism and foreign investment due to the Asian financial difficulties, and less income from the renewal of fishing vessel licenses have held GDP growth to an average of 1% over the past decade.

GDP purchasing power parity - $115 million (2001 est.)

GDP - real growth rate 1% (2001 est.)

GDP - per capita purchasing power parity - $1,600 (2001 est.)

GDP - composition by sector
agriculture: 14%
industry: 16%
services: 70% (2000 est.)

Population below poverty line NA%

Household income or consumption by percentage share
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices) 1.9% (1999 est.)

Labor force 28,698

Labor force - by occupation agriculture 21.4%, industry 20.9%, services 57.7%

Unemployment rate 30.9% (1999 est.)

Budget
revenues: $42 million
expenditures: $40 million, including capital expenditures of $NA (1999)

Industries copra, fish, tourism, craft items from shell, wood, and pearls

Industrial production growth rate NA%

Electricity - production by source
fossil fuel: 99%
hydro: 0%
nuclear: 0%
other: 1% (solar)

Agriculture - products coconuts, tomatoes, melons, taro, breadfruit, fruits; pigs, chickens

Exports $9 million (f.o.b., 2000)

Exports - commodities copra cake, coconut oil, handicrafts

Exports - partners US, Japan, Australia

Imports $54 million (f.o.b., 2000)

Imports - commodities foodstuffs, machinery and equipment, fuels, beverages and tobacco

Imports - partners US, Japan, Australia, NZ, Singapore, Fiji, China, Philippines

Debt - external $86.5 million (FY99/00 est.)

Economic aid - recipient approximately $39 million annually from the US

Currency US dollar (USD)

Currency code USD

Exchange rates the US dollar is used

Fiscal year 1 October - 30 September

NOTE: The information regarding Marshall Islands on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Marshall Islands Economy 2002 information contained here. All suggestions for corrections of any errors about Marshall Islands Economy 2002 should be addressed to the CIA.