Last May, BEA reported the CNMI’s GDP fell annually by 4.2 percent while the other territories of American Samoa, Guam and the U.S. Virgin Islands posted a modest but steady single digit-growth during the same period.
Its GDP reports are the first for the territories and were made possible through the U.S. Department of the Interior’s assistance.
BEA officials — Brian C. Moyer, associate director for industry accounts; Nicole M. Mayerhauser, industry sector division; and Aya Hamano —along with Interior’s regional economist Wali M. Osman discussed with local lawmakers these estimates and their significance.
“The notable decreases in real GDP from 2005 to 2007 were largely driven by decreases in garment exports and in tourist expenditures in the CNMI by nonresidents. Consumer spending and territorial government spending also contributed to variations in real GDP growth over the period 2002 to 2007,” the bureau’s report reads.
Osman said the U.S. territories need accurate and reliable statistics to support its goals and agenda and BEA’s findings will make that possible.
“These places need legitimate economic statistics,” he said.
Senate Floor Leader Pete P. Reyes, R-Saipan, agreed.
“I am extremely pleased that we have this kind of report. We have been going to the U.S. Congress bringing statistics that are not received well because they are not coming from what they feel are credible sources. So now, this one becomes a credible basis to support our agenda,” the senator said.
Disproportionate ratio
As the CNMI’s GDP declined from $1.320 billion in 2002 to $962 million in 2007, consumers spent more.
In 2002, the personal consumption expenditures totaled $538 million. By 2007, this rose to $566 million.
In 2006, consumer spending was pegged at $560. However, the same data also showed that it fell to $511 million in 2005 from $549 million in 2004.
“In 2005, the garment industry was impacted by reduced quotas on the imports of foreign textiles and garments,” the bureau said in its report.
“Since 2002, a number of economic shocks have contributed to a decline in the CNMI tourism industry, including the SARS epidemic and the suspension of flights from Tokyo by Japan Airlines,” it added.
The CNMI GDP data for 2008 and 2009, including that of the other territories, will be released in the spring of 2011.
The U.S. Virgin Islands has the highest real GDP per capita at $40,124 which is mainly attributed to its active oil industry run by a private firm in partnership with the Venezuelan government.
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