What are the main economic activities in the Federated States of Micronesia?

The economy of the Federated States of Micronesia is characterized by a reliance on subsistence activities and external financial support. The principal economic activities include:

• Subsistence Farming and Fishing: These remain fundamental to the local economy. Staple crops include breadfruit, taros, coconuts, and bananas, alongside yams, cassava, and sweet potatoes. Poultry, pigs, and dogs are also raised for food.1
• Service Sector: This is the major source of income, with government employment playing a significant role.1
• External Aid: The primary source of revenue is grant aid from the United States, provided under the Compact of Free Association, which accounts for nearly two-thirds of the government's revenue.1
• Commercial Activities: The government generates income through the sale of fishing rights. While commercial fishing exists on a small scale, large-scale agriculture has not been successful. Tourism is an expanding but limited sector, constrained by the islands' remote location and underdeveloped infrastructure.1

Due to limited local production, the country imports most manufactured goods, fuel, and a significant portion of its food supply.1