## 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](https://www.imf.org/en/publications/cr/issues/2016/12/31/federated-states-of-micronesia-2012-article-iv-consultation-40251)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/federated-states-of-micronesia-2012-article-iv-consultation-40251/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/federated-states-of-micronesia-2012-article-iv-consultation-40251/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/federated-states-of-micronesia-2012-article-iv-consultation-40251/bundle-manifest.json)

## 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).*

---

## Content in this bundle

- **_cr1316**
  - [_cr1316 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2013/_cr1316.pdf.md){rel="alternate" type="text/markdown"}
  - [_cr1316 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2013/_cr1316.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/federated-states-of-micronesia-2012-article-iv-consultation-40251_