This analysis highlights inflation and emigration affecting growth in Micronesia, suggesting urgent public investment is needed.
The Federated States of Micronesia (FSM) is progressing to achieve development goals, under challenging circumstances. Medium-term growth prospects remain subdued, with inflation gradually moderating. Risks are tilted to the downside; further delays in executing public investment amidst intensifying climate change would depress growth, which exacerbates emigration and skills shortages, leading to a negative feedback loop.
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International Monetary Fund. Asia and Pacific Dept (2026) studied this question.
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