'Without federal aid, Guam’s economy could have contracted by nearly 50%'

UOG report: Covid crisis highlights the pros and cons of Guam's current political status

Report: Tourism, Guam’s main economic driver, is estimated to have dipped 76 percent, resulting in a loss of local income and spending of $1.38 billion.

Guam’s Covid-year economy is estimated to have contracted between 0.7 percent and 18.9 percent, according to the School of Business and Public Administration’s assessment of the island’s tourism-dependent economy that was propped up by federal aid in 2020.

Without relief from the U.S. government, the contraction could be as much as 49 percent, according to the “2020 Guam Economic Report” released today by University of Guam economics professor, Dr. Maria Claret Ruane, who led the study team comprising students.

The report notes that the pandemic has been a “wake-up call” for the island to reduce its reliance on tourism and underscores the need to diversify the island’s economy. At the same time, the pandemic has played up the advantages and disadvantages of Guam’s relationship with the United States.