Economic Analysis

1. Samoa is a small and highly import-dependent country that relies largely on official transfers and remittances for foreign currency revenues. Despite vulnerability to external shocks, Samoa has experienced stable economic growth since 2008. Real gross domestic product (GDP) grew at about 4% per annum—well above the average growth rate of the Pacific region economies. The annual long-term growth rate is expected to be about 3.5%. Economic growth is mainly driven by agriculture, construction, finance, and business services. Samoa is also benefiting from an increase in tourism. Broadening of economic activity and private sector development are key strategies for sustaining economic growth rates and reducing poverty.