Impact of the Covid-19 Pandemic on the Federated States of Micronesia: Economic Outcomes and Policy Review
Impact of the Covid-19 Pandemic on the Federated States of Micronesia: Economic Outcomes and Policy Review (PDF). Pacific and Virgin Islands Training Initiatives (PITI-VITI). September 2021.
- Has attachment: File:TYFB3SQ8.pdf
Abstract: “Impact of the Covid-19 Pandemic on the Federated States of Micronesia: Economic Outcomes and Policy Review,” reviews the economic effects of the COVID-19 pandemic on the Federated States of Micronesia (FSM) and explores possible policy measures for economic recovery and future growth.
Economic Assessment: The paper assesses the economic impact of the pandemic and offers projections for recovery trends through the fiscal year 2025, as well as post-FY23 when the amended Compact ends. It emphasizes the importance of understanding the economic structure and performance in order to predict future economic responses.
Sectoral Analysis: Various sectors, such as construction, public administration, finance, and agriculture, are analyzed for their contribution to economic activity during the amended Compact period. Finance and agriculture were significant contributors while construction and public administration were seen as drags on growth.
Policy Focus: The final section of the article offers policy recommendations to facilitate economic stability, covering areas like statistical monitoring, private sector issues, financial reforms, the state-owned enterprise sector, and infrastructure planning.
Fiscal Restructuring: The article suggests a need for substantial restructuring of the national and state fiscal operations, a task complicated by post-FY23 uncertainties.
Mitigation Efforts: Analysis of the response by the public sector and donors, including mitigation programs and donor assistance, highlights efforts to manage the pandemic’s economic impact.
Future Planning: It suggests revisiting the 2023 Action Plan or creating a similar framework for resource allocation and private sector development, especially as the FSM recovers from the pandemic and approaches the end of current economic assistance terms under the Compact.
