What’s in store for the year ahead?

Local economists and industry stakeholders are quite cautious but generally upbeat. Guam’s economy is positioned for continued and likely increasing modest growth in 2020 and 2021, according to government economist Gary Hiles.

“There are leading indications that the three primary sources of inflows of funds to Guam from tourism, federal expenditures, and construction capital investment are likely to simultaneously increase up to and during the outlook period,” Hiles said.

Over the years, he added, Guam's $5.8 billion economy has exhibited remarkable stability and expansion, with gross domestic product consistently increasing every year since 2006 in nominal dollars despite the slow growth. Guam’s economy grows at an annual average of 1 percent.

Hiles said the trend of continuing modest economic growth is expected to continue and increase from the FY2017 and FY 2018 levels.

“During these years growth was constrained by limited construction labor supply with declining numbers of temporary foreign workers and a sharp decline in Japanese tourism arrivals due to international tensions between North Korea and the United States,” Hiles said.