The Republic of the Marshall Islands is a freely associated state with the United States, with economic activity heavily supported by U.S. Compact funding, fisheries and public administration. Geographic dispersion across atolls increases infrastructure and service delivery costs, while climate change and sea-level rise pose long-term existential risks. Recent development efforts focus on renewable energy, port and water infrastructure upgrades and fiscal reform. Sustaining economic stability will depend on continued Compact arrangements, strengthened public financial management and investments that enhance climate resilience and human capital development.

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