The U.S. Department of the Interior’s Office of Insular Affairs (OIA) has released an analysis of the economic impact of grants and payments provided to Guam and the other territories and freely associated states.
According to the report, grants and payments to Guam from OIA totaled $106.7 million in fiscal year 2018 and were primarily directed to the government sector with additional support for education and construction.
OIA estimated that the $106.7 million spent in Guam directly supported 3,363 jobs and
$105,2 million in employee compensation. These direct impacts were multiplied by Type II
Social Accounting Matrix multipliers to estimate the total impact of OIA payments on Guam’s economy. These multipliers estimate the indirect and induced effects that occur
throughout the local supply chain and as employees spend their wages.
According to the report, the indirect and induced impacts of OIA payments are estimated to be an additional 136 jobs and $3.0 million in employee compensation. Therefore, OIA concluded, the total economic impacts of this activity in Guam support 3,499 employees, $108.2 million in employee compensation, and $106.2 million in GDP.
OIA further stated that the 3,499 jobs directly and indirectly supported by OIA payments represent 6% of Guam’s total employment.
Similarly, $108.2 million of employee compensation associated with these employees’ accounts for approximately 7% of total employee compensation inside the region, and the $106,051 million of GDP associated with these employees represents 2% of total GDP produced by the region.
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