Federated States of Micronesia: 2012 Article IV Consultation
IMF Staff Country Reports, January 17, 2013
Source details
- Canonical URL
- Federated States of Micronesia: 2012 Article IV Consultation
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Bibliographic details
- Published: January 17, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475548600.002
Overview
- The Federated States of Micronesia (FSM) is highly dependent on external aid.
- Following a recession in FY2006–08, the FSM economy has grown by 2–2½ percent for FY2010 and FY2011.
- The economy remains dependent on the large public sector.
- Fisheries and agriculture sectors have shown signs of growth.
- Despite some deterioration in the current account balance, external balance has sustained a stable flow of official transfers.
- Economic growth is likely to slow in the near term owing to a decline in public sector demand.
Economic performance and sectors
- Growth: 2–2½ percent for FY2010 and FY2011.
- Recent past: recession in FY2006–08 followed by modest recovery.
- Sector composition:
- Large public sector remains dominant.
- Fisheries sector: signs of growth.
- Agriculture sector: signs of growth.
External balance and transfers
- Current account: some deterioration reported.
- Official transfers: stable flow has supported external balance.
Near-term outlook
- Projection: economic growth is likely to slow in the near term.
- Main driver of slowdown: decline in public sector demand.
Policy themes and priorities
- Fiscal consolidation and fiscal policy concerns due to dependence on public sector demand.
- Revenue administration and measures to strengthen fiscal position are implied priorities.
- Public enterprises and government balance are highlighted areas of focus.
Subject tags and keywords (from the report)
- Subjects: Economic sectors, Expenditure, Fiscal consolidation, Fiscal policy, Inflation, Prices, Public enterprises, Revenue administration.
- Keywords: Asia and Pacific, CR, FSM authorities, FSM economy, FSM government, Global, government, government balance, government development priority, IMF staff estimate, Inflation, ISCR, Micronesia, Pacific Islands, Public enterprises.
International Monetary Fund. Federated States of Micronesia: 2012 Article IV Consultation (Country Report No. 2013/016).