Economy - overview:
US Government assistance is the mainstay of this tiny island economy. The Marshall Islands received more than $1 billion in aid from the US from 1986-2002. Agricultural production, primarily subsistence, is concentrated on small farms; the most important commercial crops are coconuts and breadfruit. Small-scale industry is limited to handicrafts, tuna processing, and copra. The tourist industry, now a small source of foreign exchange employing less than 10% of the labor force, remains the best hope for future added income. The islands have few natural resources, and imports far exceed exports. Under the terms of the Amended Compact of Free Association, the US will provide millions of dollars per year to the Marshall Islands (RMI) through 2023, at which time a Trust Fund made up of US and RMI contributions will begin perpetual annual payouts. Government downsizing, drought, a drop in construction, the decline in tourism, and less income from the renewal of fishing vessel licenses have held GDP growth to an average of 1% over the past decade.
GDP (purchasing power parity):
$133.5 million (2008 est.)
$115 million (2001)
note: data are in 2008 US dollars
GDP (official exchange rate):
$161.7 million (2008 est.)
GDP - real growth rate:
-0.3% (2008 est.)
3.5% (2005 est.)
GDP - per capita (PPP):
$2,500 (2008 est.)
$2,900 (2005 est.)
note: data are in 2008 US dollars
GDP - composition by sector:
agriculture: 31.7%
industry: 14.9%
services: 53.4% (2004 est.)
Labor force:
14,680 (2000)
Labor force - by occupation:
agriculture: 21.4%
industry: 20.9%
services: 57.7% (2000)
Unemployment rate:
36% (2006 est.)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Budget:
revenues: $123.3 million
expenditures: $1.213 billion (2008)
Inflation rate (consumer prices):
12.9% (2008 est.)
Agriculture - products:
coconuts, tomatoes, melons, taro, breadfruit, fruits; pigs, chickens
Industries:
copra, tuna processing, tourism, craft items (from seashells, wood, and pearls)
Industrial production growth rate:
NA%
Exports:
$19.4 million f.o.b. (2008 est.)
Exports - commodities:
copra cake, coconut oil, handicrafts, fish
Imports:
$79.4 million f.o.b. (2008 est.)
Imports - commodities:
foodstuffs, machinery and equipment, fuels, beverages and tobacco
Debt - external:
$87 million (2008 est.)
Exchange rates:
the US dollar is used
