Pago Pago, AMERICAN SAMOA — StarKist Samoa canned tuna export and post-disaster construction activity, following last year’s Tropical Cyclone Gita, have contributed to the 2.2% increase for American Samoa’s estimated gross domestic product (GDP) for 2018, according to the federal government.

“Overall in 2018, it was a good year for American Samoa,” declared US Bureau of Economic Analysis (BEA) director,  Brian C. Moyer at the end of his brief remarks on the territory’s GDP, at last Friday’s cabinet meeting at the Tafuna Elementary School gymnasium.

GDP estimates — carried out by BEA, an agency of the US Commerce Department — for American Samoa and other US territories were developed under the Statistical Improvement Program funded by the Office of Insular Affairs (OIA) of the U.S. Department of the Interior (DOI).

Before the cabinet meeting, Moyer, who arrived last Thursday night to officially release the GDP in the territory, met earlier that morning with Gov. Lolo Matalasi Moliga, who was given a briefing of the territory’s economic condition for 2018, compared to the previous years.

Lolo invited Moyer to share the “good news” at the cabinet meeting, where the governor reminded cabinet members that American Samoa’s GDP saw a continued decline in the previous three years, but the economy improved last year.

DOI local field representative, Lydia Faleafine-Nomura, who introduced Moyer to cabinet members, reminded directors, “As many of you know, in particular those of you who have federal grant programs, data and statistical information is critical for the federal government” to make decision on funding.

In his briefing, Moyer said that with inflation adjusted, the estimate “GDP for American Samoa increased to 2.2% in 2018” — this statement followed applause from the audience — and “that is a significant increase.”

A statement and data released last Friday afternoon by BEA, notes that the GDP estimates for American Samoa show that real GDP — GDP adjusted to remove price changes —increased 2.2% in 2018 after decreasing 5.8%

For comparison, real GDP for the United States (excluding the territories) increased 2.9 percent in 2018 after increasing 2.4 percent in 2017.

According to BEA, growth in the American Samoa economy reflected increases in private fixed investment and in exports of goods that were partly offset by a decrease in inventory investment.

BEA explained that exports of goods increased 15%, primarily reflecting an increase in exports of canned tuna and related products. And this growth was partly offset by a decrease in inventory investment, as the canning industry drew down inventories to support expanded production.

During the cabinet meeting, Moyer gave similar details, and noted that exports growth covers both “goods and services” — goods fall under canned tuna and other fish products.

For the export of services, he said, it reflects an increase in non-resident spending, and this is largely consistent with higher passenger arrival in 2018. “So, tourism if you will,” he added.

According to BEA information and data, private fixed investment increased 7.7%, largely due to reconstruction and major repairs of homes and businesses that were destroyed or heavily damaged by Gita.

“In fact, today, FEMA has approved more than $10 million in financial assistance for homeowners to repair and replace homes,” Moyer told cabinet members.

He also mentioned “one other driver-growth for the American Samoan economy” although “it’s not a key driver, but an important driver, and that is consumer spending, which increased to 0.3% in 2018.”

“And most of this increase came from spending on goods. Most notably, purchases of furniture and appliances,” he said. “Again, it’s likely related to those needing to be replaced due to damage [from Gita].”

A final issue Moyer touched on is pricing for consumer spending in American Samoa, which “increased 2.5% in 2018 and it reflects the increase in the prices of food, transportation — primarily fuel cost.”

He thanked ASG officials for providing data to carry out the annual assessment and also DOI for their support. Lolo expressed appreciation to Moyer for the briefing and told cabinet members that “this is great news” to start off the cabinet meeting. “As you can see, our economy is starting to move forward,” he added.

ADDITIONAL INFORMATION

BEA released not only the 2018 estimated GDP, but revised GDP estimates for 2015- 2017, as well as revised estimates of GDP by industry and compensation by industry for 2015 and 2016.

Estimates GDP by industry for American Samoa show that the private sector and government sector “contracted in 2017” and the decline reflected a decrease in output of the cannery industry, following the closure of one of two canneries — referring to Samoa Tuna Processors which ended cannery operations in 2016.

“Output of non-manufacturing industries, including construction, also decreased. The decline in the government sector primarily reflected a decrease in territorial government employment and compensation,” BEA said.

Specific data and information can be viewed at <www.bea.gov> under the section for American Samoa, dated Aug. 23, 2019.