Economy of Micronesia

The economic activity of the Federated States of Micronesia consists primarily of subsistence agriculture and fishing. The islands have few mineral deposits worth exploiting, except for high-grade phosphate. The potential for a tourist industry exists, but the remoteness of the location and a lack of adequate facilities hinder development. Financial assistance from the US is the primary source of revenue, with the US pledged to spend $1.3 billion in the islands in 1986-2001. Geographical isolation and a poorly developed infrastructure are major impediments to long-term growth.

Top Sectors in Micronesia

Agriculture in Micronesia

Agriculture in the Federated States of Micronesia primarily revolves around subsistence farming, with key crops including taro, breadfruit, yams, and coconuts. Fishing also plays a significant role in the agricultural sector, with a focus on traditional fishing methods and the harvesting of marine resources such as tuna, shellfish, and seaweed.

Industry in Micronesia

The industrial sector in Micronesia is relatively small and undeveloped. However, there are some small-scale manufacturing activities, including food processing, handicrafts, and the production of traditional woven goods. Additionally, there may be limited industrial activities related to construction materials and basic consumer goods.

Services in Micronesia

The services sector in Micronesia encompasses a range of activities, with government services being a significant component due to the country's reliance on public sector employment. Other key service sectors include tourism, although it is underdeveloped, and retail trade catering to both local residents and tourists. Additionally, there may be some financial and professional services available, albeit on a smaller scale compared to more developed economies.

Micronesia - Key Economic Indicators

Exports and Imports

Syria's exports mainly comprise crude oil, petroleum products, textiles, and agricultural goods, while imports include machinery, transportation equipment, foodstuffs, and chemicals. However, due to the ongoing conflict and economic sanctions, specific data on export and import volumes and values may be limited or subject to fluctuations.

Infrastructure

Syria's infrastructure has been significantly impacted by the conflict, with extensive damage to roads, bridges, and other transportation networks. Estimates suggest that around 50% of the country's road infrastructure has been damaged or destroyed, hindering transportation and economic development efforts.

Balance of Trade

Before the conflict, Syria typically ran a trade deficit, with imports exceeding exports. However, the balance of trade has likely shifted during the conflict due to disruptions in trade flows and changes in export and import volumes. Specific data on the balance of trade may vary over time.

Fiscal Policy

Syria's fiscal policy has been heavily influenced by the conflict, with increased government spending on defense and security measures. Tax revenue has likely declined due to decreased economic activity and disruptions in tax collection efforts. The exact percentage changes in government spending and taxation may vary depending on specific fiscal policies implemented during the conflict.

Monetary Policy

The Central Bank of Syria has implemented various measures to stabilize the economy amidst the conflict, including adjusting interest rates and injecting liquidity into the financial system. However, the effectiveness of these actions may be limited by broader economic challenges facing the country, including inflation and currency depreciation.

Trade Agreements

Syria is not a party to major trade agreements like NAFTA (North American Free Trade Agreement). However, the country maintains diplomatic and economic relations with various countries and regional organizations, including members of the Arab League and neighboring countries in the Middle East.

Environmental Regulations

Environmental regulations in Syria may exist to address issues such as water scarcity, pollution, and conservation efforts. However, the focus on environmental regulations may have been overshadowed by the conflict and humanitarian crisis. Enforcement and compliance with environmental regulations may vary depending on the specific circumstances in different regions of the country.

Tax System in Micronesia

Capital Gains Tax: Micronesia does not have a specific capital gains tax on profits from investments.
Corporate Tax Rate: The corporate tax rate in Micronesia is relatively low, typically around 4% to 11% of business profits.
Sales Tax: Micronesia imposes a value-added tax (VAT) on goods and services. The standard VAT rate is 5%.
Property Tax: Property tax in Micronesia varies by jurisdiction but generally ranges from 0.5% to 1% of the property's assessed value.
Payroll Tax: Micronesia levies a payroll tax on wages and salaries to fund social security programs. The payroll tax rate is approximately 3.5% to 6.5%.
Tax Deductions and Credits: There are limited tax deductions and credits available in Micronesia to reduce tax liability. These may include deductions for certain business expenses and incentives for investments in specific sectors.
Tax Compliance: Tax compliance in Micronesia may vary, but efforts to improve efficiency and effectiveness in tax collection are ongoing. However, specific data on tax compliance rates are not readily available.
Tax Burden: The overall tax burden on individuals and businesses in Micronesia is relatively low compared to other countries, with total tax revenues accounting for approximately 10% to 15% of the country's GDP. However, the distribution of the tax burden may vary among different income groups and sectors of the economy.

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Micronesia, Federated States Of - East Asia And Pacific- P177073- Federated States Of Micronesia Strategic Climate-Oriented Road Enhancements - Procurement Plan (English)

Micronesia

19 Nov 2024

19 Nov 2025