The Federated States of Micronesia is a South Pacific Economy comprising about 600 islands stretching 1800 miles across the central Pacific with a population of 108,000 and a GDP of US $277 million (2002 est.) about US$2,000 per capita. Compact of Free Association with the United States running to 2023 provides for USD92 million in grants per annum (40% of current GDP).