Marshall Islands - Economy

Geography - People - Economy - Government - Communications - Transportation - Military - Transnational Issues

Marshall Islands is located Oceania, two archipelagic island chains of 29 atolls, each made up of many small islets, and five single islands in the North Pacific Ocean, about half way between Hawaii and Australia. The climate is tropical; hot and humid; wet season May to November; islands border typhoon belt. The terrain is low coral limestone and sand islands.

Economy - overview

This entry briefly describes the type of economy, including the degree of market orientation, the level of economic development, the most important natural resources, and the unique areas of specialization. It also characterizes major economic events and policy changes in the most recent 12 months and may include a statement about one or two key future macroeconomic trends.
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)

This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per- capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP- denominated GDP values for most of the wealthy industrialized countries are generally much smaller.
GDP (purchasing power parity) : $115 million (2001 est.)

GDP (official exchange rate)

This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at official exchange rates (OER) is the home-currency-denominated annual GDP figure divided by the bilateral average US exchange rate with that country in that year. The measure is simple to compute and gives a precise measure of the value of output. Many economists prefer this measure when gauging the economic power an economy maintains vis-a-vis its neighbors, judging that an exchange rate captures the purchasing power a nation enjoys in the international marketplace. Official exchange rates, however, can be artificially fixed and/or subject to manipulation - resulting in claims of the country having an under- or over-valued currency - and are not necessarily the equivalent of a market-determined exchange rate. Moreover, even if the official exchange rate is market-determined, market exchange rates are frequently established by a relatively small set of goods and services (the ones the country trades) and may not capture the value of the larger set of goods the country produces. Furthermore, OER-converted GDP is not well suited to comparing domestic GDP over time, since appreciation/depreciation from one year to the next will make the OER GDP value rise/fall regardless of whether home- currency-denominated GDP changed.
GDP (official exchange rate) : $144 million (2005)

GDP - real growth rate

This entry gives GDP growth on an annual basis adjusted for inflation and expressed as a percent.
GDP - real growth rate : 3.5% (2005 est.)

GDP - per capita (PPP)

This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
GDP - per capita (PPP) : $2,900 (2005 est.)

GDP

GDP - composition by sector - agriculture : 31.7%
GDP - composition by sector - industry : 14.9%
GDP - composition by sector - services : 53.4% (2004 est.)

Labor force

This entry contains the total labor force figure.
Labor force : 14,680 (2000)
Labor force - by occupation - agriculture : 21.4%
Labor force - by occupation - industry : 20.9%
Labor force - by occupation - services : 57.7% (2000)

Unemployment rate

This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
Unemployment rate : 30.9% (2000 est.)

Population below poverty line

Population below poverty line : NA%

Household income or consumption by percentage share

Data on household income or consumption come from household surveys, the results adjusted for household size. Nations use different standards and procedures in collecting and adjusting the data. Surveys based on income will normally show a more unequal distribution than surveys based on consumption. The quality of surveys is improving with time, yet caution is still necessary in making inter-country comparisons.
Household income or consumption by percentage share - lowest 10% : NA%
Household income or consumption by percentage share - highest 10% : NA%

Budget

This entry includes revenues, expenditures, and capital expenditures. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
Budget - revenues : $42 million
Budget - expenditures : $40 million (1999)

Fiscal year

Fiscal year : 1 October - 30 September

Inflation rate (consumer prices)

This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.
Inflation rate (consumer prices) : 3% (2005 est.)

Agriculture - products

This entry is an ordered listing of major crops and products starting with the most important.
Agriculture - products : coconuts, tomatoes, melons, taro, breadfruit, fruits; pigs, chickens

Industries

This entry provides a rank ordering of industries starting with the largest by value of annual output.
Industries : copra, tuna processing, tourism, craft items (from seashells, wood, and pearls)

Industrial production growth rate

This entry gives the annual percentage increase in industrial production (includes manufacturing, mining, and construction).
Industrial production growth rate : NA%

Electricity

Electricity - production by source - fossil fuel : 99%
Electricity - production by source - hydro : 0%
Electricity - production by source - nuclear : 0%
Electricity - production by source - other : 1% (solar)

Exports

This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
Exports : $9.1 million f.o.b. (2000)

Exports - commodities

This entry provides a listing of the highest- valued exported products; it sometimes includes the percent of total dollar value.
Exports - commodities : copra cake, coconut oil, handicrafts, fish

Exports - partners

This entry provides a rank ordering of trading partners starting with the most important; it sometimes includes the percent of total dollar value.
Exports - partners : US, Japan, Australia, China (2006)

Imports

This entry provides the total US dollar amount of merchandise imports on a c.i.f. (cost, insurance, and freight) or f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
Imports : $54.7 million f.o.b. (2000)

Imports - commodities

This entry provides a listing of the highest- valued imported products; it sometimes includes the percent of total dollar value.
Imports - commodities : foodstuffs, machinery and equipment, fuels, beverages and tobacco

Imports - partners

This entry provides a rank ordering of trading partners starting with the most important; it sometimes includes the percent of total dollar value.
Imports - partners : US, Japan, Australia, NZ, Singapore, Fiji, China, Philippines (2006)

Economic aid

Economic aid - recipient : $56.56 million (2005)

Debt - external

This entry gives the total public and private debt owed to nonresidents repayable in foreign currency, goods, or services. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
Debt - external : $86.5 million (FY99/00 est.)

Currency (code)

Currency (code) : US dollar (USD)

Currency code

Currency code : USD

Exchange rates

This entry provides the official value of a country's monetary unit at a given date or over a given period of time, as expressed in units of local currency per US dollar and as determined by international market forces or official fiat. The International Organization for Standardization (ISO) 4217 alphabetic currency code for the national medium of exchange is presented in parenthesis.
Exchange rates : the US dollar is used

More Information about the country

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