Guam’s Gross Domestic Product has increased by 3.19 percent from 2013 to 2014, and by 12.9 percent from 2010 to 2014. This news follows reports from the Department of Labor showing Guam’s unemployment rates are steadily decreasing and that employment rates are climbing.
“There is steady growth in tourism, more restaurants and businesses are opening, and there are more opportunities for our people,” stated Governor Eddie Baza Calvo. “This report helps confirm what we already have seen: the economy is improving.”
The Governor also noted that news of the economy’s growth is consistent with the revenues estimated in the Fiscal 2016 budget. There were several senators who moved to decrease appropriations for a number of agencies, creating a problem – a budgetary shortfall – that senators now have to fix.
The Gross Domestic Product measures the dollar value of all goods and services produced on the island. Private sector growth, particularly in tourism and construction, were the largest factors contributing to the increase.
“Growth was widespread among the components of GDP and included increases in private fixed investment, government spending, and consumer spending,” according to the Bureau of Economic Analysis.
- Private fixed investment: Spending by businesses on construction and equipment increased 6.7 percent. Private-sector projects over this period included the continued construction of Guam’s first private hospital and a new luxury hotel in Tumon. Government construction projects, including the new Navy hospital facility and road projects, contributed to growth in 2014
- Consumer spending:Spending on services, including health care, showed 1.4 percent increase.
- Exports: Primarily consisting of tourist spending, exports showed an increase of 4.8 percent, which also reflected strong growth in Korean visitor arrivals as well as a growth in average tourist spending.
Even after adjusting for inflation, the GPD showed an increase of 1 percent. The estimate from the Bureau of Economic Analysis, under the U.S. Department of Commerce, also showed the economy was able to accommodate Guam’s population growth.