Economy - overview Agriculture and tourism are the mainstays of the economy. Agriculturalproduction is concentrated on small farms, and the most important commercialcrops are coconuts, tomatoes, melons, and breadfruit. Small-scale industryis limited to handicrafts, fish processing, and copra. The tourist industryis the primary source of foreign exchange, employs about 10% of the laborforce, and remains the best hope for future added income. The islands havefew natural resources, and imports far exceed exports. The government is draftingeconomic reforms designed to increase revenue and compensate for reductionsin US Government grants - in 1994, the US Government provided grants of $50million, equal to 55% of the Marshall Islands' GDP. About 25% of the government'sFY95/96 budget was devoted to debt repayment. In 1996, efforts to stabilizethe economy included a 27% reduction in the government's work force and a10% cut in the budget.

GDP purchasing power parity - $94 million (1995 est.)

GDP - real growth rate 1.5% (1995 est.)

GDP - per capita purchasing power parity - $1,680 (1995 est.)

GDP - composition by sector
agriculture: 16%
industry: 14%
services : 70% (1994)

Inflation rate - consumer price index 4% (1995 est.)

Labor force
total : 4,800 (1986)
by occupation: NA

Unemployment rate 16% (1991 est.)

Budget
revenues : $67.2 million
expenditures: $79.6 million, including capital expenditures of $21.6 million (FY94/95est.)

Industries copra, fish, tourism, craft items from shell, wood, and pearls, offshorebanking (embryonic)

Industrial production growth rate NA%

Electricity - capacity 16,000 kW (1994)

Electricity - production 57 million kWh (1994)

Electricity - consumption per capita NA kWh

Agriculture - products coconuts, cacao, taro, breadfruit, fruits; pigs, chickens

Exports
total value: $21.3 million (f.o.b., 1995 est.)
commodities: fish, coconut oil, live animals, trochus shells
partners: US, Japan, Australia

Imports
total value: $69.9 million (c.i.f., 1995 est.)
commodities: foodstuffs, machinery and equipment, fuels, beverages and tobacco
partners: US, Japan, Australia

Debt - external $170 million (1994)

Economic aid
recipient: under the terms of the Compact of Free Association, the US is to provideapproximately $40 million in aid annually

Currency 1 United States dollar (US$) = 100 cents

Exchange rates US currency is used

Fiscal year 1 October - 30 September

NOTE: The information regarding Marshall Islands on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Marshall Islands Economy 1997 information contained here. All suggestions for corrections of any errors about Marshall Islands Economy 1997 should be addressed to the CIA.