THE CNMI’s business gross revenues totaled $442 million during the first quarter of calendar year 2002—a 22 percent or $126 million drop from the same period in 2001.
This is the lowest business gross revenue figure in the last seven quarters.
The previous quarters’ levels ranged between $454 million and $568 million.
Based on the latest CNMI Quarterly Economic Indicators report released by the Department of Commerce yesterday, the January to March 2002 business gross revenues decline sharply from the $568 million posted during the same period in 2001.
“Businesses are not making much money to make a difference. We are still affected by the Asian economic crisis, and then by the Sept. 11 attacks,” said Jesse Palacios, the acting director of the Banking Division.
The CNMI expected that the impact of the Sept. 11 events would be reflected in the October to December business gross revenues. But the latest data shows that the local economy is still affected by the Sept. 11 terrorist attacks and continues to get worse.
The January to March level is lower by 2.6 percent compared to the October to December figure of $454 million.
Businessman Ed Salas said the Sept. 11 attacks “exacerbated” the CNMI’s economic woes.
“Based on this quarter’s report compared to the previous quarter, it appears that we haven’t reached rock bottom yet, and that is very discouraging and disconcerting news,” Salas told Variety in an interview.
Salas, who is the general manager of Niizeki International Saipan Co. Ltd., said it will take some time before the CNMI economy recovers from the current slump.
“We just need to continue our efforts to cut and control costs,” he added.
The CNMI’s business gross revenues stood at $2.6 billion in 1997 and $2.1 billion in 2001.
Rep. Stanley Torres, R-Saipan, said the CNMI should “prepare for the worst.”
Torres, the chairman of the House Ways and Means Committee, said the quarterly business gross revenue figures might further drop in the next months.
He said if this trend continues throughout the end of 2002, then the latest annual business gross revenue figure might prove to be much lower than expected.
The business gross revenue figures released by the Department of Commerce were supplied by the Department of Finance.
Commerce also reported a 17.3 percent decline in government collections for October to December 2001 compared to the same period in 2000.
From $52.7 million, the total collections from taxes and fees dropped to $43.6 million.
This is also the lowest general fund revenue since at least the third quarter of fiscal year 2000. The collections previously ranged from $46.76 million to $66.3 million.
These collections came from business gross receipt tax, wage and salary tax, garment certification fee, corporate income tax, excise tax, hotel occupancy tax, fuel/container bar tax, other fees, charges and other revenues.
Commerce is yet to release the January to March 2002 government collections.
