Archive for September, 2012



American Samoa GDP Grew in 2010

The economy of American Samoa grew 1.3 percent in 2010, according to new estimates from the Bureau of Economic Analysis (BEA). The growth in real gross domestic product (GDP) largely reflected increases in territorial government spending and private fixed investment, including construction.

For the first time, BEA also calculated estimates of GDP by industry, compensation by industry, and detailed consumer spending for the island. BEA also revised previous estimates for 2002 to 2009.

American Samoa returned to growth in 2010 after 2 years of economic contraction. The island’s growth compares with 2.4 percent for the United States as a whole in 2010.

Following the September 2009 earthquake and tsunami, the American Samoa government significantly increased its spending, including hiring temporary workers for cleanup and recovery operations. Construction activity picked up as homes and other structures damaged or destroyed by the natural disaster were repaired and rebuilt.

Economic growth was tempered by a decline in exports, which consisted overwhelmingly of exports of the tuna canning industry.

Consumer spending also continued to be a drag on the American Samoa economy in 2010, declining for the 6th straight year. Spending fell in both goods and services.

GDP by industry and compensation by industry
For American Samoa, the GDP by industry estimates show that the manufacturing industry, which includes tuna canning, contracted 12.9 percent in 2010. The tuna canning industry, which had experienced a steep decline in 2009 due to the closure of one of the territory’s two canneries, continued to decline in 2010. Nonmanufacturing industries, on the other hand, grew 5.3 percent in 2010, and the territorial government sector increased 2.7 percent.

Private sector compensation fell in 2010, largely as a result of the cannery closure in 2009. Territorial government compensation, including compensation paid to temporary workers after the earthquake and tsunami, increased in 2010.

BEA plans to release estimates for 2011 in the spring of 2013. You can read the latest news release and tables here.

Trade in Digitally Enabled Services Shows Strong Growth

U.S. trade in services enabled by digital technologies grew at a faster pace than trade in all other services in recent years, a new analysis by the Bureau of Economic Analysis (BEA) shows. Information and communications technologies (ICT) play an important role in cross-border trade in services, and improvements in these digital technologies and reductions in their costs have played an important role in contributing to growth in trade in services.

Several organizations, including the United Nations and the Organization for Economic Cooperation and Development (OECD), have defined ICT-enabled trade in services. From these definitions, BEA has identified the categories of ICT-enabled services in its own trade in services statistics as royalties and license fees; insurance; financial services; telecommunications; and business, professional, and technical services (except construction). Isolating these categories of services shows that as digital technologies have advanced and become cheaper in recent years, trade in ICT-enabled services has shown strong growth and increased as a share of all services trade.

U.S. exports
From 1998 to 2010, ICT-enabled services exports grew at an average annual rate of 9 percent, compared with a growth rate of 3 percent for all other services exports. During this period:
• The share of private services exports composed of ICT-enabled services increased from 45 to 61 percent.
• The fastest average annual growth was in insurance services (13 percent) and financial services (12 percent).

U.S. imports
From 1998 to 2010, ICT-enabled services imports grew at an average annual rate of 10 percent, compared with a growth rate of 3 percent for all other services imports. During this period:
• The share of all private services imports attributable to ICT-enabled services increased from 34 to 56 percent.
• The fastest average annual growth was in insurance services (17 percent) and business, professional, and technical services (11 percent).

Worldwide
A similar analysis of OECD trade in services data indicates that worldwide trends in ICT-enabled services trade have been moving in the same direction as those of the United States. From 2002 to 2008, for a set of countries responsible for the majority of worldwide trade:
• The share of global services exports attributable to ICT-enabled services grew from 47 to 52 percent.
• The share of global services imports attributable to ICT-enabled services grew from 43 to 46 percent.

For the details behind the analysis and to learn more about the recent trends in ICT-enabled trade in services, read the full report.