Marshall Islands profile

Demography and Health

The Marshall Islands is a very small nation by population, with about 37,548 people recorded in 2024, placing it among the smallest independent states in global population rankings. This tiny base amplifies the impact of migration on overall demographics, as evidenced by a substantial negative net migration figure of -1,765 in 2024, suggesting that more people depart the country than arrive. Fertility dynamics show a crude birth rate of 21.1 per 1,000 people in 2023, and a crude death rate of 6.97 per 1,000 in 2023, indicating a modest natural increase that is likely tempered by out-migration. Life expectancy at birth stands at 66.9 years (2023), which is comparatively low by global standards and signals health and development challenges common to small, isolated economies with limited domestic markets and health resources. The mortality profile is further illustrated by an under-5 mortality rate of 28.2 per 1,000 live births (2023), pointing to persistent child health and access-to-care challenges that require ongoing attention, particularly in remote areas across scattered atolls and islands. On the financing side, current health expenditure is 11.7% of GDP (2022), and domestic general government health expenditure per capita, PPP, is 281 international dollars (2022), suggesting a health system that is primarily financed domestically but with constrained per-capita spending, which can limit service breadth, access, and equity. Connectivity indicators reveal that 65.7% of the population uses the internet (2023), indicating a solid but not universal level of digital access that can influence health information dissemination, telemedicine potential, and education. Overall, the demography and health landscape portrays a small, dispersed population with moderate natural growth tempered by out-migration, modest health financing with room to expand access, and public health outcomes that benefit from targeted investments in maternal, child, and preventive care, especially across geographically dispersed communities.

Economy

The Marshall Islands operates a small, open economy with a current US$ GDP per capita of 7,467 in 2024, alongside a Purchasing Power Parity (PPP) GDP per capita of 8,198 international dollars. This places income levels in the lower-middle range among economies, reflecting the country’s narrow production base and heavy dependence on external sectors. The structure of trade indicates a sizable headline openness: exports of goods and services accounted for 38.9% of GDP in 2023, while imports absorbed 71.2% of GDP in the same year, underscoring a pronounced import dependence and a trade profile vulnerable to external price movements and supply disruptions. Despite substantial import needs, the economy recorded a current account balance of 29.5% of GDP in 2021, a surprisingly large surplus that could reflect significant transfers, remittances, development aid, or one-off capital movements that offset a goods deficit, though such a large surplus may be volatile year to year. The country’s investment picture shows net foreign direct investment (FDI) inflows at 0.787% of GDP in 2023, indicating limited foreign capital participation in productive activities and highlighting an opportunity to attract more sustainable investment to diversify the economy. Unemployment stood at 9.82% in 2021, indicating ongoing labor market slack, while the renewable energy transition remains in early stages, with renewable energy comprising 12.2% of total final energy consumption in 2022. Taken together, the economy is characterized by a small, open framework with significant reliance on external inputs, a delicate balance between trade dynamics and transfers, limited investment inflows, and a cautious but tangible path toward energy diversification and resilience in the face of external shocks.

Trade and Investment

Trade and investment dynamics for the Marshall Islands reveal a highly open but resource-constrained economy. Exports of goods and services reached 38.9% of GDP in 2023, signaling that a substantive share of national income comes from external markets, albeit without large-scale manufacturing sectors; imports accounted for 71.2% of GDP in 2023, highlighting heavy reliance on imported goods and fuels to sustain domestic consumption and services. The apparent asymmetry between export performance and import dependence underscores vulnerability to external price fluctuations, shipping costs, and supply chain disruptions. Foreign direct investment net inflows were about 0.787% of GDP in 2023, indicating a modest level of external capital participation in the economy and suggesting room for strategic policy reforms to attract more capital, technology, and private sector activity. The current account balance figure of 29.5% of GDP in 2021 remains notable and could reflect sizeable grants, remittances, or offshore financial activity that cushion macro balances, yet it also signals the importance of diversifying export earnings and strengthening domestic capacity to reduce exposure to external shocks. In sum, the Marshall Islands presents a trade profile with dependence on imports for consumption and energy, limited but positive investment inflows, and macro balances that call for prudent management to sustain growth, resilience, and shared prosperity.

Governance and Institutions

Governance indicators for the Marshall Islands show a nuanced picture. Political stability and absence of violence/terrorism score 1.18 with a rank of 13 in 2023, suggesting relatively solid political stability and a low risk of domestic political upheaval compared with many peers. However, regulatory quality is weaker, with a value of -0.423 and a rank of 124, signaling challenges in the design and implementation of policies and regulatory frameworks that can foster private sector activity, competition, and efficiency. The rule of law performs comparatively better at 0.677 (rank 49), implying reasonably functioning legal norms and the enforceability of contracts, but it coexists with a modest control of corruption at 0.412 (rank 65) and low government effectiveness at 0.07 (rank 85), indicating that while formal rules exist and political order is stable, practical governance and public sector performance face constraints. This combination suggests a governance environment that is stable and predictable, but where regulatory reform, bureaucratic efficiency, and anti-corruption efforts could benefit from targeted capacity-building, institutional strengthening, and transparency initiatives to improve investment climate and service delivery. The data collectively imply a governance landscape with strengths in stability and rule-of-law foundations, but persistent gaps in regulatory quality and government effectiveness that affect business environments and public performance.

Infrastructure and Technology

Infrastructure and technology in the Marshall Islands reflect a small archipelagic economy making measured progress in digital connectivity and energy transition. Internet adoption stands at 65.7% of the population in 2023, indicating a substantial portion of citizens are online, with room to extend access to more remote atolls and communities. Renewable energy constitutes 12.2% of total final energy consumption in 2022, signaling ongoing diversification away from imported fossil fuels toward local or distributed energy sources, though reliance on fossil fuels remains high and energy security depends on reliable logistics for fuel imports. The extremely low per-capita greenhouse gas emissions—0.0695 t CO2e per capita in 2023—reflect the small population size and limited industrial activity, implying a relatively light environmental footprint per person but also an opportunity to pursue sustainable, low-emission development as the nation scales its energy and infrastructure planning. Public health and energy expenditures show that domestic general government health expenditure per capita, PPP, is 281 international dollars (2022), highlighting a government-financed health effort that is modest in scale but targeted to improve service delivery. Collectively, infrastructure and technology indicators point to a country with growing digital access and an early-stage energy transition, balanced against geographic dispersal, logistics costs, and the need for investment to improve connectivity, reliability, and resilience for citizens and the economy.

Environment and Sustainability

Environmental metrics for the Marshall Islands reveal a setting of relatively low per-capita greenhouse gas emissions (0.0695 t CO2e per capita in 2023), reflecting limited heavy industry and population size. Renewable energy share at 12.2% of total final energy consumption in 2022 indicates a decarbonization trajectory that can be accelerated through solar, wind, and energy efficiency investments, a crucial path given climate vulnerability associated with rising sea levels and extreme weather in Pacific atolls. The modest emissions footprint, however, coexists with high exposure to environmental risks such as coastal erosion, saltwater intrusion, and risks to freshwater and fisheries, which are central to livelihoods and food security. The combination of a small economy, import dependence, and limited internal energy production makes climate resilience and sustainable resource management essential policy priorities. In this context, advancing renewable energy deployment, improving coastal and water management, and strengthening climate adaptation financing would help mitigate environmental risks while creating opportunities for local job creation and energy security. Overall, sustainability in the Marshall Islands hinges on leveraging its low-emission profile while intensifying investments in renewables, resilience, and adaptive capacity for a warming, more extreme climate future.