GDP Increased 1.6% but ASG and Private Sector Declined

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The estimates of gross domestic product (GDP) released yesterday by the Bureau of Economic Analysis (BEA), US Department of Commerce show real GDP for American Samoa for 2014, GDP adjusted to remove price changes — increased 1.6 percent in 2014.

For comparison, real GDP for the U.S. (excluding the territories) increased 2.4 percent in 2014.

The growth in the American Samoa economy reflected widespread increases among the components of GDP.

These increases were partly offset by an increase in imports of goods, which is a subtraction item in the calculation of GDP.

Growth in private fixed investment and in exports of goods reflected increased activity of the tuna canning industry.

Private fixed investment, which is spending by businesses on construction and equipment, increased for a second consecutive year.

This growth reflected continued investments by the tuna canning industry, including the construction of a multimillion dollar tuna processing plant.

The increase in exports of goods was due to growth in exports of canned tuna.

Government spending also increased, primarily reflecting growth in spending by the territorial government.

Federal grant revenues supported major territorial government projects in 2014, including the telecommunication authority’s work to improve broadband capacity and coverage in American Samoa.

GDP BY INDUSTRY
The estimates of GDP by industry show that the private sector and the government sector both declined in 2013.

The decline in the private sector primarily reflected a decrease in nonmanufacturing industries.

The manufacturing sector also contracted due to lower output of the tuna canning industry.

The decline in the government sector primarily reflected operating losses of territorial government enterprises.

The compensation by industry estimates, which are measured in current dollars, show trends in compensation for major industries.

Total compensation increased in 2013 due to growth in nonmanufacturing industries and in the territorial government sector.

The 2012 Economic Census of Island Areas included, for the first time, information on American Samoa businesses’ capital expenditures for structures and equipment.

This resulted in improved estimates of private fixed investment that replaced indirect measures based on building permit data and imports of capital goods.

The revised estimates are larger than the indirect measures; for example, in 2012, private fixed investment previously represented less than 3 percent of GDP; in the revised estimates, private fixed investment represents approximately 8 percent of GDP.

The revised estimates show a similar pattern of economic growth as the previously published estimates.

From 2002 to 2013, real GDP decreased at an average annual rate of 1.4 percent, compared with a decrease of 1.0 percent in the previously published estimates.

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