The estimates of GDP for Guam show that real GDP—GDP adjusted to remove price changes—decreased 0.3 percent in 2018 after increasing 0.2 percent in 2017. For comparison, real GDP for the United States (excluding the territories) increased 2.9 percent in 2018 after increasing 2.4 percent in 2017.
The decline in the Guam economy in 2018 reflected decreases in territorial government spending and private fixed investment that were partly offset by growth in exports of services.
Territorial government spending decreased 1.3 percent. Guam government spending on construction and equipment decreased despite progress on major infrastructure projects, including an improved wastewater treatment plant.
Private fixed investment decreased 0.9 percent, reflecting a continued decline in business spending on construction. Although overall construction employment grew in 2018, much of this employment was related to Defense construction; in the private sector, a number of major projects were delayed.
Exports of services, which consists primarily of spending by tourists, grew 2.2 percent. This reflected increases in total visitor arrivals and average spending by Korean and Japanese tourists, who make up much of Guam’s tourist market.
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