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ECONOMY

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Gross Domestic Product

Yap’s economy is small, and its GDP is not individually reported but contributes to the FSM’s overall GDP. FSM’s GDP is around $400 million.

Primary Sector

Agriculture, fishing, and forestry.

Secondary Sector

Small-scale manufacturing and handicrafts.

Tertiary Sector

Public administration, tourism, and services.

Primary Sector

Agriculture in Yap is largely subsistence-based, with key products including taro, yams, bananas, coconuts, and betel nuts. The island’s small-scale commercial agriculture is challenged by limited arable land and the impacts of climate change. Fishing is a traditional and significant part of Yapese life, with both reef and lagoon fishing being common. Although commercial fishing is limited, Yap benefits from licensing fees from foreign vessels operating in its Exclusive Economic Zone (EEZ).

Secondary Sector

The public sector is a major employer in Yap, with government jobs providing essential services in education, healthcare, and infrastructure. Yap's economy is heavily reliant on external aid, particularly through the U.S. Compact of Free Association, which provides financial assistance and supports public services. Additionally, Yap receives development assistance from countries like Japan and Australia, focusing on sustainable development, climate change adaptation, and infrastructure projects.

Tertiary Sector

Despite its challenges, including geographic isolation, small market size, vulnerability to natural disasters, and dependence on external aid, Yap presents opportunities for economic development. These include the potential for expanding eco-tourism, sustainable fisheries, and renewable energy. The state's trade is limited, with imports primarily consisting of foodstuffs, fuel, machinery, and manufactured goods, while exports are minimal, mainly consisting of handicrafts and small-scale agricultural products.