Federated States of Micronesia: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Federated States of Micronesia

The Federated States of Micronesia (FSM) is progressing to achieve development goals, under challenging circumstances. Medium-term growth prospects remain subdued, with inflation gradually moderating. Risks are tilted to the downside; further delays in executing public investment amidst intensifying climate change would depress growth, which exacerbates emigration and skills shortages, leading to a negative feedback loop.