U.S. Bureau of Economic Analysis: Gross Domestic Product for Guam UP 0.5% in 2012, After Falling 0.6% in 2011

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Guam – The U.S. Bureau of Economic Analysis [BEA] has released a report showing that the “real” Gross Domestic Product for Guam rose 0.5% in 2012 after falling 0.6% in 2011.

By comparison, the “real” GDP for the U.S. (excluding the territories) increased 1.8%  in 2011 and 2.8% in 2012.

READ the release from the BEA in FULL with charts below:

THE BUREAU OF ECONOMIC ANALYSIS (BEA) RELEASES 2011 AND 2012 ESTIMATES OF GROSS DOMESTIC PRODUCT FOR GUAM

HAGATNA, GUAM – (December 5, 2013) – Today, the Bureau of Economic Analysis (BEA) is releasing estimates of gross domestic product (GDP) for Guam for 2011 and 2012, in addition to estimates of gross domestic product by industry and compensation by industry for 2011.* These estimates were developed under the Statistical Improvement Program funded by the Office of Insular Affairs (OIA) of the U.S. Department of the Interior. The release of the 2012 statistics reflects a one-year acceleration in the availability of the GDP estimates for Guam.

The latest estimates for 2005 to 2010 for GDP, GDP by industry, and compensation by industry are also presented in this release.  

Gross Domestic Product for 2011 and 2012
The estimates of GDP for Guam show that real GDP–GDP adjusted to remove price changes–decreased 0.6 percent in 2011 and increased 0.5 percent in 2012 (see Table 1.3). For comparison, real GDP for the U.S. (excluding the territories) increased 1.8 percent in 2011 and 2.8 percent in 2012.

In 2011, the decline in real GDP reflected a decrease in private fixed investment and a deterioration in the trade balance that was partly offset by growth in territorial government spending (see Table 1.4).* The decrease in private fixed investment reflected a drop in private construction activity, including the suspension of a major residential construction project. The increase in territorial government spending reflected growth in government construction activity; projects during this period included construction of a high school and various road projects.

In 2012, the increase in real GDP reflected an improvement in the trade balance that was partly offset by decreases in government spending. Exports of services, which consists primarily of spending by tourists, contributed significantly to economic growth. Both federal and territorial government spending detracted from growth, as government construction activity fell and compensation of employees decreased.

Gross Domestic Product by Industry and Compensation by Industry for 2011
The estimates of GDP by industry for Guam show that the private sector was the source of the decrease in real GDP in 2011 (see Table 2.5). The largest contributor to the decline was the construction sector.

[*1 These estimates are based on limited source data and are subject to revision.]
[* 2 In this news release, “government spending” refers to “government consumption expenditures and gross investment.”]

The government sector, which includes the territorial government and the federal government, increased. This increase reflected growth in compensation
of government employees.

The compensation by industry estimates, which are measured in current dollars, show trends in compensation for major industries (see Table 2.6). Total compensation increased in 2011, reflecting increases in federal and territorial government compensation that were partly offset by decreases in compensation for the construction sector and “other” private industries.

The accompanying tables present estimates for GDP and its major components, GDP by industry, and compensation by industry. Also included in this release are estimates for the major components of gross domestic income.

Revisions to GDP

Estimates for 2008 to 2010 that were released on September 24, 2012 have be en revised in order to incorporate improvements to source data; these improvements include the following:

• Incorporating newly available data from the U.S. Census Bureau’s 2010 Census of Population and Housing.
• The incorporation of revised source data on federal government spending.

The pattern of growth in the revised estimates is similar to that of the previously published estimates (see Table 1.7).

Future directions
Moving forward, an agreement between OIA and BEA will extend and improve the estimates of GDP for Guam. The information provided by the Guam Government will continue to be critical to the
successful production of these estimates.

BEA currently plans to release GDP estimates for 2013 in the summer of 2014. GDP by industry and compensation by industry estimates for 2012 will also be released at the same time.   

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