Samoa's Gross Domestic Product (G.D.P.) by expenditure in constant 2013 terms for the calendar year 2021 went down by 5.1 per cent when compared to the year 2020.

This is the second consecutive year of negative growth in expenditure and the the decline in 2021 follows growth rates of –13.2 per cent and 9.4 per cent in the previous calendar years 2020 and 2019.

The findings were revealed in a recent report titled “GDP (Expenditure) Annual Analysis – 2021" released by the Samoa Bureau of Statistics (S.B.S.) and dated 22 April 2022. 

“The decline in 2021 follows growth rates of –13.2 per cent and 9.4 per cent in the previous calendar years 2020 and 2019,” reads the report. 

The report revealed that the total sum of expenditure components at constant prices stood at $1,854.3 million (or $1.85 billion) for the calendar year under review.

The main components that make up total expenditure include the final consumption expenditure (F.C.E.), gross capital formation (G.C.F.) and balance on external goods and services. 

“Overall, F.C.E. and G.C.F. continue to increase throughout the years. This indicates that the nation’s economy level of export is significantly lesser compared to the level of products being imported into the country.

“There is little fluctuation in the growth of all these three components on an annual basis.”

The total G.D.P. expenditure of $2,191.2 million ($2.19 billion) in nominal terms was recorded for the calendar year 2021. However, it went up by 0.2 per cent compared to the previous year. 

All three components of G.D.P. expenditure (F.C.E., G.F.C.F. and Balance on Goods & Services) recorded increases in growth compared to the previous year. 

For the F.C.E. accounts for expenditure on goods and services primarily used for the direct satisfaction of individual needs (consumption), the total F.C.E. on an annual basis in 2021 amounted to $2,042.7 million in constant terms, which increased by 4.6 per cent compared to $1,952.8 million in the year 2020.

The household final consumptions expenditure (H.F.C.E.) which includes activities such as household purchases of products and payments went up by 5.3 per cent on an annual basis.

Whereas, the expenditure in restaurants and hotels, education, communication, furnishings, household equipment, food beverages and tobacco contributed significantly to the increase in H.F.C.E.

The Government Final Consumption Expenditure (G.F.C.E.) and Non-Profit Institutions serving Households Final Consumption Expenditure (NPISH FCE) both went up by 1.8 per cent and 2.6 per cent respectively compared to the year 2020.

Nominal F.C.E. in the year 2021 amounted to $2,240.0 million ($2.24 billion) which has increased by 6.9 per cent compared to the previous calendar year 2020.

H.F.C.E. contributed the most to this outturn at $1,706.1 million ($1.71 billion) increasing by 5.5 per cent compared to $1,617.4 million ($1.62 billion) in the previous year 2020. GFCE and NPISH-FCE also increased by 14.7 per cent and 2.1 per cent respectively.

Furthermore, the total G.F.C.F. on an annual basis in 2021 amounted to $654.2 million in constant terms which decreased by 1.9 per cent compared to $667.1 million in the year 2020 

For the percentage change in G.F.C.F. in real terms from 2013-2021, it shows a trend that is consistent with the effect of the measles epidemic that first affected the nation followed by the prolonging effect of the COVID-19 pandemic.

According to S.B.S., these global circumstances and its effects are reflected on the trend on investment and acquisition of non-financial assets towards the end of 2019 and 2020.

G.F.C.F. also known as investment is the acquisition of produced assets including construction, durable equipment and cultivated resources went down by 1.9 per cent compared to 2020.

The balance on external goods and services also known as net exports is the balance between exports and imports of goods and services within the country for a period of 12 months. 

“On an annual basis, net exports in 2021 amounted to -$874.4 million in constant terms which increased by 28.3 per cent compared to -$681.7 million in the year 2020. 

“The level of imported merchandise goods and services is considerably high compared to the total amount of exported produce shipped to other countries for trade.

“The level of total imports increased in 2021 recovering from the decline experienced in the year 2020. Imports registered total expenditure in constant terms of $1,120.1 million ($1.12 billion); it increased by 15.1 per cent compared to 2020.”

In addition, merchandise goods accounts for 79.5 per cent while services accounts for 20.5 per cent of total imports of goods and services.

However, the total export in real terms continue to decline since 2019 and is yet to recover; it reached its highest registering a total of $749.0 million in 2019 and has since then declined by 61.1 per cent and 15.7 per cent for the year 2020 and 2021 respectively.

According to the Bureau, G.D.P. 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.