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Micronesia earned a GDP worth $204 million in 2006. Per capita national income stood at $3,374 for same period. Services sector contributed 77%, industry 4% and agriculture 19%, of national GDP. Its official currency is US dollar.
Micronesia economy overview
Fishing, tourism and agriculture are prime industries in Micronesia. Fish, betel nut and kava are main exports of this nation. Main imports include food, fuel and manufactured goods. Fishing and subsistence farming are traditional sources of livelihood for this economy. This country also has some mineral deposits. Micronesia economy can evolve as a tourist destination with proper infrastructural development. Micronesiaâs private sector is experiencing a slow growth at present. Reduction in US financial assistance has also posed some problems for this nation. Its geographical isolation and poor infrastructure are impediments in its march towards long run development.
As per a 2008 fact sheet released by Asian Development Bank, at present Micronesia economy is dominated by its public sector. This economy receives grants from US under Compact II assistance program. Micronesia faced an economic contraction in 2006. Major long run policy goals of this economy are attainment of self-sustainability and poverty reduction. Other goals include a better provision of basic social amenities. As per Asian Development Bank sustainable economic growth, active participation of private sector and high level of public sector governance are some determinants of long rum development of this nation. Micronesia economy as a whole has received loans worth over $75.14 million and $23.68 million of technical assistance from ADB since 1990s.
Another TA program has been approved by ADB in 2007 for strengthening economic planning and management of this economy. This is meant to help this economy achieve its development targets despite dwindling public sector budget. Institutional strengthening and human resource development are key focus areas for long run growth of this economy
EU finance ministers on 7th October 2008 agreed in principle on undertaking measures for thwarting ill effects of ensuing global financial crisis. EU ministers settled for deposit guarantee for EU residents for â¬50,000 of their savings. Maltese depositors were also to gain from this decision. As per Malta government, this country has remained largely unaffected by global financial crisis. EU finance ministers have taken necessary steps for ensuring financial stability of the system.