Gross domestic product (GDP) is one of the primary indicators used to assess the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period; you can think of it as the size of the economy.
In FY 2014, FSM’s GDP dropped by 3.4 percent since last year. This resulted from a major decline in the construction industry at -2.7 percent and transport, storage, and communication industry at -0.6 percent.
In third quarter of 2015, the number of arrivals into the FSM was 8,387; indicating an increase of 8.6 percent compared with the first quarter. The average monthly arrival for 2015 is 2,000. The main destination of arrival is Pohnpei State recording slightly over 50 percent compared with the other states.
The three top reasons for visiting are seamen and crew (42%), tourism and visitors (36%), and business and employment (19%).
US citizens continue to dominate the number of arrival into the FSM in 2015 at (22%), followed by Asia (20%), Philippines (17%), and Japan (11%).
International merchandise trade for FSM saw a drop in both exports and imports. The value for exports in FY 2014 decreased by 20.4 percent compared to FY 2013, mainly due to the drop in the export of tuna. The value for imports, during the same period, had also decreased by 13.7 percent. There were less construction materials and fuels being imported during that period.
Consumer Price Iindex
FSM is comprised of four states, Kosrae, Chuuk, Pohnpei and Yap and home to 102,843 people. The CPI measures the rate of price change of goods and services purchased by households in each of the four states.
The annual inflation rate for third quarter of 2015 showed a negative 1.0 percent compared with the same quarter in 2014; indicating a slight decrease in the prices of goods and services. This is attributed mainly to the decrease in the price of electricity. The other contributing items to the decline are imported food items, services and etc. By contrast, the prices of clothing and tobacco went up by 6.8 and 0.09 respectively.
In fiscal year 2014, the total number of employed persons in the FSM was 14,817. This is a decline in employment by 2.3 percent compared with fiscal year 2013. This is due mainly to the decrease of employment in the construction and the public administration sectors.
The Department of Resources and Development in collaboration with its counterparts in the states is finalizing the preparation and planning to conduct a nation-wide census in agriculture. Like the census of population and housing where every household in the FSM were visited and the people in the FSM were counted, the agriculture census will do the same except that what will be counted or estimated are the livestock, poultry, plants, fish and area of arable lands. This will be the first agriculture census in the FSM to let us know what land and sea resources we have, how they are being used and what could still be potentially developed. Not knowing this information, policies on the utilization and development of these resources will be at best ill-informed. In July 2016, around 500 contracted workers or enumerators will be visiting every home throughout the states, including the outer islands, to conduct the census. The Department of Resources & Development is finalizing the public awareness programs for the census but in the meantime, it is seeking the assistance and cooperation of the people in the FSM to help in the implementation of this important exercise.