‘CNMI economy sustaining momentum’

A positive forecast about the CNMI’s economy was reported by a new First Hawaiian Bank economic analysis.

The 2015 economic forecast report was prepared for the bank by Dr. Maria Claret M. Ruane, resident development economist at the University of Guam-Pacific Center for Economic Initiatives.

“The economy of the Commonwealth of the Northern Mariana Islands has been sustaining its growth momentum,” Ruane said.

“These developments, especially in tourism, combined with U.S. federal spending as well as military activity already in place fuel economic optimism for 2015,” she added.

In the report, she cited key developments such as sustained growth in tourism as well as construction of new hotels and a casino on Saipan.

“As expected, strong tourism has been driving economic growth in the CNMI, with three consecutive years of growth in arrivals since 2011, the last down year,” Ruane said.

“The first quarter of 2015 brought 6.1 percent more visitors than the same months of 2014,” she said, noting that major increases from Korea and China compensated for significant drops from Japan and Russia.

“The main factor in these trends appears to be airline seat availability combined with promotional efforts by the Marianas Visitors Authority and its partners,” Ruane said.

According to the report, increased spending by tourists and local residents alike can be seen from merchant credit and debit card activity processed by First Hawaiian Bank.

“The latest data shows card spending activity to be up 4.3 percent for the first quarter of 2015,” Ruane said.

Another key development cited was the lower uncertainty with regards to federalization.

“This year brings more certainty and, to some extent, stability with regard to [the] CNMI’s federalization process,” Ruane said, noting that changes to immigration policies have been delayed because of the extension of the CW program.

In job growth, Ruane cited a recent report by the CNMI Department of Labor that shows 826 job openings posted during the first quarter of 2015.

Military plans for Tinian and Pagan that have been revealed and are currently under public review are also among the key developments.

“There appears to be strong and vocal opposition to the proposal, with particular concern about use of mortars and grenades. Even the Saipan Chamber of Commerce plans to change its earlier, more supportive position,” the report noted.

Guam’s 4th year of growth

Guam, on the other hand, is on its fourth year of growth since 2011.

“Guam’s economy is in its fourth consecutive year of growth in 2015, thanks to promising developments in its main economic drivers—tourism, federal spending (including military spending), and real estate,” the report said.

“Guam’s low inflation, low unemployment, modest job growth and increased spending are expected to continue through 2015,” Ruane said

First Hawaiian Bank, with total assets of $18.7 billion, was founded in 1858 and has been serving the Guam region for over 45 years. The bank operates 57 branches in Hawaii, two in the CNMI, and three in Guam.