This report describes economic developments in the Marshall Islands during the 1990s. Real GDP grew by 3.7 percent in 1995. Copra production increased, owing mainly to more frequent inter-island transport services by government-owned ships. Construction activity was boosted by the availability of external concessional aid financing for a high school and a garment factory, foreign direct investment on a dry dock, and a government-sponsored 150-room hotel. Value added from the transport, communications, and energy sectors rose, owing in part to an improvement in the financial performance of government-owned enterprises.