DOC Director says federal policy a factor in decline of fishing industry

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Governor Lolo Moliga was presented the 2016 Gross Domestic Product report for American Samoa yesterday by the Director of the Bureau for Economic Analysis, Brian Moyer and Aya Hamano, Chief Program Coordination Office, and economist.

The report showed that after a 1.5% increase in 2015, GDP slipped 2.5% in 2016.

Director of Commerce Keniseli Lafaele commenting on the BEA report said after growths of 1.0% and 1.2% in 2014 and 2015 respectively, real GDP went south 2.5%.

All components of GDP- consumption, private investments, government spending and net exports registered negative numbers; but most notably in private investments…there were no new construction, according to BEA officials make up about 9% of GDP; on government spending…there was no new construction, and government accounts to about 40% of GDP).

There was also a decline in exports of 1.1% and a corresponding decline in imports fish, machinery reflecting on our fishing industry.

Lafaele said the decline in the imports of raw materials for processing and exports is the result of federal policy of increasing Pacific marine monuments and sanctuaries, and restrictions on fishing on the high seas.

The DOC Director said what was noticeable since 2008 is a pattern of two years of declining GDPs, followed by two years of (albiet small) positive GDPs.

After spurts of growth in (2010 and 2011), there were two years of declines, 2012 and 2013…then, two positive growth years in 2014 and 2015, and now a negative GDP of 2.5% in 2016.

The DOC director said this will more likely be followed by negative growth in 2017 given the closure of Samoa Tuna Processors in December 2016, now being felt this year.

KHJ News points out that the economic models the Department of Commerce economist presented at the Chamber of Commerce meeting on ASG’s revenue generating bills last week forecasts growth in the economy next year.

That would run counter to the pattern of two years of growth followed by two years of decline, Lafaele cites.