Micronesia’s economy is heavily reliant on subsistence agriculture, fishing, and financial assistance from the Compact of Free Association with the United States. Limited natural resources and geographic isolation constrain growth. Government policies focus on resilience and infrastructure development. Regulatory frameworks are underdeveloped, particularly in foreign investment. Society is culturally diverse but faces high unemployment and emigration. Education and healthcare systems are basic, with significant reliance on international aid. Climate change, particularly rising sea levels, poses existential threats to communities and infrastructure.
