The Marshall Islands face significant economic challenges, including a lack of diversification, limited infrastructure, and a reliance on external aid flows. The country’s main economic activities are copra production and fisheries, and the subsistence economy consists of fishing and cultivation of breadfruit, banana, taro, and pandanus. The Marshall Islands’ GDP in 2016 was an estimated $180 million, with a real growth rate of 1.7%, and the GDP per capita was $3,300. The country’s imports far exceed exports, and the Marshall Islands received roughly $1 billion in aid from the US during the period 1986-2001. The country’s economic vulnerability to climate change is expected to range from just under moderate to high.
The Republic of Marshall Islands can achieve higher household incomes, increased employment, and economic growth by focusing on the health and education of its people, improving the quality of government spending, and maximizing the benefits of key sectors like fisheries. The World Bank’s Country Economic Memorandum and Public Expenditure Review has examined the opportunities, risks, and reforms that can help deliver sustainable long-term growth and outlines reforms that can help deliver sustainable long-term growth. The Marshall Islands’ National Strategic Plan provides a clear pathway for the country’s development, and the report shows that by investing in people and fiscal systems, and making the most of its fisheries resources, Marshall Islands can chart a course towards greater economic independence.
The Marshall Islands’ government is working to address the country’s economic challenges and promote economic growth. The country’s economic forecasts predict GDP growth of 2.2% in 2023 and 2.5% in 2024. The Asian Development Bank partners with the country in strengthening energy security, water, sanitation, and solid waste management infrastructure, education, public financial management, and governance. The Marshall Islands’ government is also working to strengthen its investment climate, and the country’s economy combines a small subsistence sector in the outer islands with a modest urban sector in Majuro and Kwajalein. The government is committed to promoting economic growth and improving the country’s investment climate. The Marshall Islands face significant economic challenges, including a lack of diversification, limited infrastructure, and a reliance on external aid flows. The country’s government is working to address these challenges and promote economic growth by focusing on the health and education of its people, improving the quality of government spending, and maximizing the benefits of key sectors like fisheries. The Asian Development Bank partners with the Marshall Islands in strengthening energy security, water, sanitation, and solid waste management infrastructure, education, public financial management, and governance. The Marshall Islands’ government is also working to strengthen its investment climate and promote economic growth.
