Samoa’s economy on recovery path

Photo: FILE

Samoa is slowly recovering from the effects of the COVID-19 pandemic lockdowns, according to the latest Samoa Bureau of Statistics data.

Samoa’s Gross Domestic Product (GDP) by Expenditure in constant 2013 prices for the calendar year 2022 went up by 3.2 percent when compared to the calendar year 2021.

This quarter generated a positive growth in expenditure recovering from two consecutive quarters of negative growth. The total sum of expenditure components at constant prices stood at $1.95 billion (US$717 million) for the calendar year under review.

The main components that make up total expenditure include Final Consumption Expenditure (FCE), Gross Capital Formation (GCF), and Balance on External Goods and Services.

Overall, GCF increased by 11.3 percent compared to the previous calendar year with inventory changes contributing the most. This shows that the nation has slowly recovered from the COVID-19 pandemic with increases in stock changes. There is little fluctuation in the growth of all these three components on an annual basis.

Total GDP expenditure of $2.37 billion (US$872 million) in nominal terms was recorded for the calendar year 2022. It went up by 12.1 percent compared to the previous year.

FCE and GCF recorded an increase in the reviewed calendar year while Net Exports declined by 39 per cent.

FCE accounts for expenditure on goods and services primarily used for the direct satisfaction of individual needs (consumption). FCE on an annual basis recorded a total of $1.97 billion (US$871 million) in constant terms, declining by 3.3 per cent compared to the previous year 2021 reporting an amount of $2.04 billion (US$751 million).

Household Final Consumption Expenditure (HFCE) which included activities such as household consumption of food and related products went down by 6.5 per cent compared to the previous year 2021.

According to the Bureau of Statistics, this performance was generated from expenses on education, communication, health, restaurants and hotels, and food and beverages.

Government Final Consumption Expenditure (GFCE) and Non-Profit Institutions Serving Households (NPISH) both went up by 10.5 percent and 2.5 percent respectively compared to the year 2021.

Gross domestic product (GDP) is Samoa’s official measure of economic growth. GDP is compiled and published using the production and expenditure approach. The expenditure approach measures the total value of all final goods and services purchased in an economy over a set period of time. That includes all consumer spending, government spending, business investment spending, and net exports.