The economic architecture of Marshall Islands is substantial, anchored by a Gross Domestic Product (GDP) of approximately $259.3M
2023
. This places it as the 190th largest economy out of 192 countries measured, underscoring its significance on the world stage. On a per capita basis, GDP stands at $6.68K
2023
, while its GDP adjusted for Purchasing Power Parity (PPP) is estimated at $292.45M, offering a clearer picture of the population's domestic purchasing power. The economy is facing headwinds, marked by a contraction of -3.9%
2023
On the global stage, Marshall Islands's trade and financial dynamics reveal a complex interplay of international and domestic factors. The nation's economic activity is heavily reliant on foreign goods, running a considerable trade deficit with imports at 71.2% of GDP and exports at 38.9%
2023
. The investment climate attracts significant Foreign Direct Investment (FDI), with inflows constituting 0.79% of the economy
2023
. This performance positions the country 133rd globally out of 187 nations, confirming its status as a competitive destination for foreign capital. Furthermore, personal remittances from its diaspora are a vital component of the economy, amounting to a substantial $34.45M annually
2023
. Fiscal capacity is adequate, with tax collections representing 17.2% of GDP, supporting core state functions.
2020
The socio-economic landscape is characterized by a Gross National Income (GNI) per capita of $7,860
2023
, ranking the nation 88th out of 191. This figure provides a comprehensive measure of the average income per person, reflecting the nation's overall economic well-being. Despite its economic standing, poverty remains a salient issue, with 7.2% of the population living below the national poverty line
2019
. The nation exhibits a moderate degree of income inequality, with a Gini index of 35.5.
2019
In the environmental and energy sectors, the nation's policies and outcomes reflect its developmental priorities. Energy consumption per capita stands at 614.971 kg of oil equivalent
2007
, a metric that often correlates with industrial activity and living standards. The energy portfolio remains heavily dependent on conventional sources, with renewables contributing a modest 12.2%
2022
. This commitment places it 60th among 191 countries, highlighting its relative progress in decarbonization. Total greenhouse gas emissions were last recorded at 2.7 tonnes of CO2 equivalent
2023
, a key factor in its national climate strategy and international obligations.

Key Economic Insights

Macroeconomic Health

Balancing growth, inflation, and employment remains the core challenge for economic stewardship.

Trade & Investment Profile

The orientation towards global trade and foreign investment is a defining feature of the economic landscape.

Social Equity & Distribution

Ensuring equitable distribution of economic gains is fundamental for long-term social and political stability.

Energy & Sustainability

The transition to a sustainable energy framework is paramount for mitigating climate risk and securing future energy needs.

More About This Country

Neighbors & Regional Peers

Note: The information on this page has been compiled from authoritative sources. While every effort is made to ensure accuracy, please note that some figures may not be current or entirely precise.