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Phone Code: 00691Root-level Domain Code: .fm
Phone Code: 00691
Root-level Domain Code: .fm
Background: In 1979 the Federated States of Micronesia, a UN Trust Territory under US administration, adopted a constitution. In 1986 independence was attained under a Compact of Free Association with the US, which was amended and renewed in 2004. Present concerns include large-scale unemployment, overfishing, and overdependence on US aid.
Economy Overview: Economic activity consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting, except for high-grade phosphate. The potential for a tourist industry exists, but the remote location, a lack of adequate facilities, and limited air connections hinder development. The Amended Compact of Free Association with the US guarantees the Federated States of Micronesia (FSM) millions of dollars in annual aid through 2023, and establishes a Trust Fund into which the US and the FSM make annual contributions in order to provide annual payouts to the FSM in perpetuity after 2023. The country's medium-term economic outlook appears fragile due not only to the reduction in US assistance but also to the slow growth of the private sector.
Geography Note: four major island groups totaling 607 islands
Location: Oceania, island group in the North Pacific Ocean, about three-quarters of the way from Hawaii to Indonesia
Natural Resources: forests, marine products, deep-seabed minerals, phosphate
Geographic Coordinates: 6 55 N, 158 15 E
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