CNMI’s GDP up 4.4 pct. in 2013

Higher tourism numbers and improved consumer spending contributed to the CNMI experiencing a 4.4-percent increase in its Gross Domestic Product in 2013, according to the U.S. Bureau of Economic Analysis of the U.S. Department of Commerce.

BEA said the estimates of GDP for the CNMI show that real GDP—GDP adjusted to remove price changes—increased 4.4 percent in 2013.

For comparison, real GDP for the U.S. (excluding the territories) increased 2.2 percent in 2013. The growth in the CNMI’s economy reflected increases in consumer spending and exports of services.

The BEA report said that consumer spending, which was the largest contributor to economic growth in 2013, increased 12.3 percent.

“This increase was driven primarily by durable goods, reflecting growth in purchases of motor vehicles,” it said.

Tourism continued to contribute positively to the economy in 2013, after posting double-digit growth in 2012. Exports of services, which consist mostly of spending by tourists, increased 8.8 percent in 2013 after growing 17.2 percent in 2012.

The growth from last year placed the Commonwealth in better standing compared to other territories such as American Samoa and the U.S. Virgin Islands, which experienced declines based on OIA numbers.

In hearing the news, both Gov. Eloy S. Inos and Lt. Gov. Jude U. Hofschneider praised the findings as a sign of continued growth for the islands’ economy.

“This latest report shows that we are going in a very much needed positive direction,” said Inos. “If we continue to stay the course, we could see an even bigger jump in the future. This news definitely makes me both happy and excited.”

Hofschneider added: “This is welcome news for all our islands, as the numbers indicate we are getting stronger. Our lawmakers, the administration, and the Legislature must continue to explore ways to keep generating new revenue.”

Acting Department of Commerce secretary Mark O. Rabauliman said the 4.4-percent increase in GDP only means that the islands’ economy is finally on the rebound after years of being moribund.

“The GDP being the overall gauge for the health of the Commonwealth’s economy, it clearly shows from this report that the economy here is improving after years of downward trend. I hope this indicates that the economy is now rebounding. The best news on our economy that has come to my office so far—consumer spending increased and tourism data showing solid growth—are just the kinds of positive news I want to hear heading into the holidays!”

Central Statistics Division director Alfonis M. Sound echoed Rabauliman’s sentiments in an email to Saipan Tribune.

“The continued positive growth in our economy as shown by the latest GDP report is a result of the hard work and all the collaborative efforts between our private and public sector in reviving our economy. I also want to thank and acknowledge the excellent teamwork between our office and the contributing agencies and offices to make this report possible. I encourage all players to remain steadfast and to continue these collaborative efforts in bringing this important report to our users in the years to come.”

NMI Republican Party chair James Ada took the opportunity to trumpet his candidates’ achievements by saying that the GDP growth is yet another proof that the CNMI is in good hands under an Inos administration.

“Wow, our economy is improving every day and these numbers are just another reason that our Commonwealth needs Gov. Inos and Sen. [Ralph] Torres leading our people,” Ada said.

He pointed out that everyday he sees new businesses opening up, hotels are full, stores are moving products off their shelves, and so many more signs that the CNMI economy is moving in a positive direction.

“I am so proud to stand with Gov. Inos and Sen. Torres because without them and other members of the Legislature, I am quite certain our economy wouldn’t be in this good of a shape. The IT and GOP team will continue to move forward with our ‘Solutions Driven’ leadership style of government and I can’t wait for the next four years!” he said.

These 2013 estimates from BEA were developed under the Statistical Improvement Program funded by the Office of Insular Affairs of the U.S. Department of the Interior.

The BEA report on the CNMI’s GDP is available for view on the bureau’s website at: http://www.bea.gov.