Economy of Samoa

related topics
{company, market, business}
{food, make, wine}
{rate, high, increase}
{water, park, boat}
{island, water, area}
{build, building, house}
{country, population, people}
{service, military, aircraft}
{village, small, smallsup}
{town, population, incorporate}

The economy of Samoa is dependent on agricultural exports, development aid and private family remittances from overseas. The country is vulnerable to devastating storms. Agriculture employs two-thirds of the labor force, and furnishes 90% of exports, featuring coconut cream, coconut oil, natural gas and copra. Outside of a large automotive wire harness factory, the manufacturing sector mainly processes agricultural products. Tourism is an expanding sector; more than 70,000 tourists visited the islands in 1996. The Samoan Government has called for deregulation of the financial sector, encouragement of investment, and continued fiscal discipline. Observers point to the flexibility of the labor market as a basic strength for future economic advances.

Contents

Trade

New Zealand is Samoa's principal trading partner, typically providing between 35% and 40% of imports and purchasing 45%-50% of exports. Australia, American Samoa, the United States, and Fiji also are important trading partners. Its main imports are food and beverages, industrial supplies, and fuels. The primary sector (agriculture, forestry, and fishing) employs nearly two-thirds of the labor force and produces 17% of GDP. Samoa's principal exports are coconut products and fish.

Fishing has had some success in Samoan waters, but the biggest fisheries industry (headed by Van Camp and StarKist) has been based in American Samoa. StarKist Management announced that it was going ahead with setting up at Asau a blast-freezer project to be operational by 2002. This announcement dispelled a growing suspicion about the genuine motives of StarKist to move to Samoa. The proposed blast-freezer operations in Asau were expected to bring this village back to life.

Non-conventional sources of revenue

Samoa annually receives important financial assistance from abroad. The more than 100,000 Samoans who live overseas provide two sources of revenue. Their direct remittances have amounted to $12.1 million per year recently, and they account for more than half of all tourist visits. In addition to the expatriate community, Samoa also receives roughly $97.57 million annually in official development assistance from sources led by Japan, Australia, and New Zealand. These three sources of revenue--tourism, private transfers, and official transfers--allow Samoa to cover its persistently large trade deficit.

Full article ▸

related documents
Economy of Papua New Guinea
Economy of Latvia
Economy of Paraguay
Orange (brand)
Economy of Uganda
Economy of Laos
Economy of Madagascar
Oligopoly
Economy of Tunisia
Seigniorage
Time Warner
Ponzi scheme
EBay
Economy of Botswana
Derivative (finance)
Carlyle Group
Pfizer
Canadian dollar
Tariff
Economy of Saint Kitts and Nevis
Lloyd's of London
Economy of Bulgaria
Economy of Tanzania
Economy of Malta
Local Exchange Trading Systems
Economy of Cambodia
Economy of Mongolia
Economy of Nicaragua
Economy of Qatar
British Aerospace