The International Monetary Fund said in October that “Global inflation is forecast to rise from 4.7% in 2021 to 8.8% in 2022, but to decline to 6.5% in 2023 and to 4.1% by 2024.”
That doesn’t help any of us presently grappling with the costs of doing business, but its good to know that the end is in sight.
The IMF went further. The projected growth for Pacific-island countries in per capita GDP between 2019 and 2027 is 1% each for Palau and the Federated States of Micronesia, and 6% for the Marshall Islands for the same period, the IMF said.
While the FSM and the Marshalls have been welcoming to visitors, it was Palau that really developed its ocean attractions into significant revenue and developed a worldwide tourism profile.
But what has kept all of the islands in the North and South Pacific afloat in the past few years of COVID-19 is the aid and loans that have come from the U.S. and other regional countries, such as Japan and Australia, and of course the support their communities received as governments dispersed that funding.
For the military and local construction industries, that money is still to be spent with contractors facing further requests for proposals as MilCon contracts appear side by side with “$90 million in Bipartisan Infrastructure Law funding,” according to a White House November fact sheet.
“Guam is set to receive nearly $30 million for transportation to invest in roads, bridges, public transit, ports, and airports and more than $26 million for clean water,” the White House said.
Kin Cook and David John and I visited with companies that do business in Micronesia in preparation for this year’s List. It was sobering to hear the stories of missing tourists, a lack of inventory in island businesses and labor shortages.
Nevertheless, our companies have found new ways to branch out. The Super American Circus at Guam’s Pacific Islands Club is one example, as is the launch of a regional and international airline as Marianas Southern Airways and Northern Marianas Airways launch in the Northern Mariana Islands.
The businesses in our List are here for the long haul and a return to more stable economies in the islands.
When pruning cuts are made to a tree, healthy trees are genetically equipped to close the wound and grow, according to Growing a Greener World.
Many of our businesses have of necessity been pruned in the last couple of years. Just like trees, businesses have drawn on stored energy reserves to remain upright. It’s encouraging to see the new flush of leaves that have begun to grow as businesses develop fresh offerings, while some of our businesses have planted saplings and diversified.
Read on for the analyses by Kin Cook and David John on behalf of the sponsors of the List — Bank of Guam and ASC Trust LLC.