Economy

The US dollar is the currency of Micronesia. The primary economic activity are subsistence agriculture and fishing. Breadfruit, taro, coconuts, and bananas are the most common foods, but yams, cassava, and sweet potatoes are also produced on parts of the higher islands. This is absolutely one of the things to know before traveling to Micronesia.

Poultry, pigs, and dogs are sometimes bred for food. The major source of financing is grant money from the US government, which is still in place thanks to the Free Association Agreement inked in 1982. Grants from outside sources provide for about two-thirds of the revenue. The original contract, which had expired in 2001, was extended in 2003 with minimal changes. A source of revenue is the service industry, which includes government jobs. The selling of fishing rights also generates cash for the government. Economy is also one of the things to know before traveling to Micronesia.

Tourism is slowly growing, with the islands' isolation and inadequate infrastructure holding it back. Local commercial fishing is only being developed on a modest scale, while large-scale agriculture has failed on several occasions. The only minerals worth discussing are unexplored offshore phosphate reserves of excellent quality.