Marshall Islands — Business
Statistics
•GDP: US$144 million (2005).
• Main exports: Copra cake, coconut oil, handicrafts and fish.
• Main imports: Food, consumer goods, machinery and petroleum products.
• Main trade partners: USA, Japan, Australia and New Zealand.
Economy
The economy suffers many of the problems faced by the small, remote island states of the Pacific. Aid subventions from the USA remain essential, while repeated and diverse attempts to broaden the base of the economy have met with mixed success. Agriculture is of a subsistence nature, with coconuts, tomatoes, melons and breadfruit as the main products.
The fishing industry is dominated by a commercial tuna operation. The islands’ international shipping registry has been a key source of income. There were high hopes for tourism development, but plans have since been scaled down.
There is also an offshore financial services industry. However, in 2002 the Marshall Islands were one of seven countries ‘named and shamed’ for their failure to tackle the issue of money-laundering.
Under the recent Amended Compact of Free Association, the USA will continue providing the islands with millions of dollars in aid annually until 2023, at which point aid will be replaced by annual payouts from a trust fund.
Growth was recorded as 3.5% in 2005, and inflation was at 3%. Unemployment is difficult to measure, but hovers around 30%.
The Marshall Islands is a member of the South Pacific Commission and the South Pacific Forum.
Business Contacts
Majuro Chamber of Commerce
Majuro MH 96960, Marshall Islands
Tel: 625 2525.
Website: www.majurochamber.net
