Federated States of Micronesia: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Federated States of Micronesia
IMF Staff Country Reports, September 6, 2019
Source details
- Canonical URL
- Federated States of Micronesia: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Federated States of Micronesia
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Bibliographic details
- Published: September 6, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513513263.002
Key findings and recent performance
- 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’ decision to save revenue windfalls."
- Private sector activity "remains anaemic."
- The country "is highly vulnerable to climate change."
Risks and medium-term outlook
- Various economic supports under the Compact Agreement with the United States "are set to expire in 2023."
- Unless renewed, the FSM is expected to lose access to:
- "Compact grants, giving rise to a fiscal cliff in 2023;"
- "banking sector oversight by the Federal Deposit Insurance Corporation;"
- "post-disaster rehabilitation assistance."
- Recommended medium-term disaster-risk management instruments include:
- "disaster insurance" and
- "disaster-contingent foreign financing."
Policy recommendations and resilience measures
- Strengthen capacity to implement adaptation projects to "improve resilience to climate change."
- Use financial instruments to mitigate disaster risks over the medium term: "disaster insurance and disaster-contingent foreign financing."
Publication and subject metadata
- Publication title: Federated States of Micronesia: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Federated States of Micronesia
- Date: September 6, 2019
- Series: Country Report No. 2019/288
- Issue: 288
- Volume: 2019
- Pages: 78
- DOI: https://doi.org/10.5089/9781513513263.002
- Stock No: 1FSMEA2019001
- ISBN: 9781513513263
- ISSN: 1934-7685
- Subject: Environment, External debt, Extra-budgetary funds, Natural disasters, Public debt, Public financial management (PFM), Revenue administration
- Keywords: CR, debt, energy master plan, Extra-budgetary funds, fiscal cliff, FSM authorities, FSM banking law, FSM economy, Global, IMF quota, IMF-World Bank Climate Change Policy Assessment, ISCR, Micronesia, Natural disasters, Pacific Islands
International Monetary Fund. Asia and Pacific Dept "Federated States of Micronesia: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Federated States of Micronesia", IMF Staff Country Reports 2019, 288 (2019), accessed 9/11/2026, https://doi.org/10.5089/9781513513263.002
Content in this bundle
- 1fsmea2019001