Micronesia

The Federated States of Micronesia is a small, aid-dependent nation of islands spread across the western Pacific, whose economy depends overwhelmingly on financial assistance from the United States under a Compact of Free Association.

US aid and fishing-license revenue sustain the economy, which has little private industry, and the country is working to build a trust fund for when Compact funding winds down.

Key Sectors

The economy rests on US Compact assistance, fishing-license fees from its vast ocean territory, subsistence agriculture and fishing, and modest tourism.