Monday, June 07, 2010
[IWS] BEA: GDP for NORTHERN MARIANA ISLANDS [7 June 2010]
IWS Documented News Service
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
GROSS DOMESTIC PRODUCT FOR THE COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS [7 June 2010]
[full-text, 9 pages]
CAPITAL HILL, SAIPAN (June 7, 2010) – Today, the Bureau of Economic Analysis (BEA) is releasing its first set of estimates of the major components of gross domestic product (GDP) for the Commonwealth of the Northern Mariana Islands (CNMI).1
Objectively gauging changes in economic activity is difficult in the absence of comprehensive economic metrics, such as the GDP. Until now, a framework did not exist to estimate the GDP of the CNMI. The Statistical Improvement Program, funded by the Office of Insular Affairs (OIA) of the U.S. Department of the Interior, has made it possible for BEA to develop formal methodologies for measuring the GDP of the CNMI.
On May 5, 2010, BEA released estimates of total GDP for American Samoa, the CNMI, Guam, and the U.S. Virgin Islands. The estimates for the CNMI showed that from 2002 to 2007, real GDP -- GDP adjusted to remove price changes -- decreased at an average annual rate of 4.2 percent.2 (For comparison, the average annual growth rate for the United States (excluding the territories) was 2.8 percent over this period.)
The estimates released today supplement the estimates of total GDP for the CNMI that were released in May. The accompanying tables present estimates for the major components of GDP, including consumer spending, private fixed investment, net exports, and government spending.3 Also included in this release are estimates of the major components of gross domestic income.
The estimates of the major components of GDP highlight the impact that the garment manufacturing and tourism industries had on the CNMI’s economic growth over the period 2002 to 2007. The notable decreases in real GDP from 2005 to 2007 were largely driven by decreases in garment exports and in tourist expenditures in the CNMI by nonresidents. Consumer spending and territorial government spending also contributed to variations in real GDP growth over the period 2002 to 2007.
In constructing the estimates for the CNMI, BEA used methodologies consistent with the methods used to estimate U.S. GDP. Information from the Economic Census of Island Areas was used to establish levels of GDP for the years 2002 and 2007. Annual series were then developed and used to estimate GDP for the intervening years. Because the CNMI is not included in most of the major surveys used by BEA to estimate U.S. GDP, the support of government leaders in the CNMI and the assistance provided by the CNMI Department of Commerce, the CNMI Department of Finance, and the Commonwealth Ports Authority were critical to the successful production of the estimates presented in this release.
Moving forward, the agreement between OIA and BEA will extend and improve the estimates of GDP for the CNMI. BEA currently plans to release estimates for both 2008 and 2009 in the spring of 2011.
AND MUCH MORE...including TABLES....
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