Economic activity consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting, except for high-grade phosphate. The potential for a tourist industry exists, but the remoteness of the location and a deficiency of sufficient facilities hinder development. In 1996, the nation experienced a 20% reduction in revenues from the Compact of Free Association - the agreement between the US and Micronesia in which Micronesia receives $1.3 billion in financial and technical assistance over a 15-year time until 2001 - as a result of the second step-down under the agreement. Since these revenues accounted for 57% of consolidated government revenues, reduced Compact funding resulted in a severe depression. While Micronesia's economy appears to have bottomed out in 1999, the nation's medium-term economic outlook remains fragile due to likely further reductions in external grants made under the US Compact funding. Geographical isolation and a poorly developed infrastructure remain major impediments to long-term growth.