Economy took a beating in ’05

The Commonwealth’s economic decline in 2005 showed up virtually across the board, with the garment industry the hardest hit, as shown by a huge drop of almost 40 percent in its export value compared with the previous year.

The latest economic indicators recently released by the Department of Commerce showed that garment export value totaled $500.8 million in 2005—a 39.4-percent decrease from the previous year’s $826 million.

This also reflects a 50-percent decline compared with the 1997-1998 level.

Authorities earlier predicted that the industry would suffer the most beginning last year due to the impact of the World Trade Organization’s lifting of worldwide trade quotas, which took effect on Jan. 1, 2005.

Unable to compete globally, some local manufacturers had closed down, while others underwent a massive downsizing.

In terms of imports, the CNMI recorded a total of 605,000 tons of imported products: 214,000 tons of petroleum, oil, and lubricants; 19,000 tons of cement, 112.9 tons of garment, and 259,000 tons of other items.

Govt collection down

The collective shock experienced by the CNMI’s largest industry last year showed up on the revenue side of the government, with government coffers experiencing a 4-percent decline in its collection.

Data showed that it only collected $210.3 million in taxes and fees last year.

In 2004, the general fund revenue was up at $218 million.

Big spending, remittance up

In terms of expenditures, the government posted $224.1 million in expenses in 2005, which is 4 percent higher than 2004.

Last year, some $112.6 million also flowed out of the CNMI in the form of overseas remittances, mainly by its nonresident workers. This is nearly 20 percent higher than the previous year, which posted a total remittance of $95 million.

There are some 40,000 nonresident workers in the CNMI who regularly remit money to their families outside the Commonwealth.

Banking

Bank deposits went down a little in 2005, totaling $523.7 million.

In 2004, deposits were up at $559.7 million.

Total deposits in 2005 included $178.6 million in checking, $175.4 million in savings, and $169.7 million in TCDs.

Bank loans totaled $193.8 million last year, including $81.5 million in consumer loans, $47.3 million in real estate, and $65 million in commercial loans.

Tourism

Tourist arrivals declined by 14 percent in 2005 compared with the previous year.

The CNMI received a total of 506,846 visitors last year.

Average monthly hotel rate was up 4 percent in 2005.

Hotels daily rate averaged at $83 last year.

The rate was down to $80 in 2004, $78 in 2003, $81 in 2002, and $89 in 2001.

The hotel occupancy rate went down to 70 percent in 2005 from 72 percent in 2004.

Due mainly to the Sept. 11, 2001 terrorist attacks and the SARS epidemic, hotel occupancy rates in the CNMI plunged in 2003 to 65 percent and 63 percent in 2002.

Telephone lines

There were more people connected to telephone lines in 2005 than in 2004.

Statistics showed 31,752 entities with telephone lines last year, which is nearly 1 percent higher than in 2004.

Data showed that there were 20,551 commercial phone lines and 11,201 residential telephone lines in 2005.

Saipan has 10,178 telephone lines, Tinian has 499, and Rota has 524.

Permits

The government issued 350 new building permits in 2005, translating to $28.9 million.

Of the total number, 164 were for commercial purposes and 186 for residential uses.

In terms of work permits, the Department of Labor issued 36,405 permits in 2005, which is about 3,000 more than last year.

The bulk of the permits went to the garment industry (14,512), services (10,998), hotel (2,687), construction (2,076), private household {2,012}, and restaurants (1,670).