Top Sectors in American Samoa

Retail in American Samoa

Retail trade and various service industries, including hospitality, transportation, and financial services, are important for the local economy. These sectors cater to both the resident population and visitors, including tourists and business travelers.

Tourism in American Samoa

Tourism is an emerging sector with potential for growth. American Samoa's natural beauty, cultural heritage, and unique location attract visitors, contributing to the local economy through spending on accommodation, food, tours, and other activities.

agriculture in American Samoa

Traditional agriculture and fishing are important for local subsistence and cultural practices. However, these sectors are relatively small in terms of economic output. Local farming includes taro, bananas, breadfruit, and other tropical crops, while fishing activities primarily support local consumption.

Craft Industries in American Samoa

There is some small-scale manufacturing and production of crafts and traditional goods. These activities provide additional sources of income and support local entrepreneurship.

American Samoa - Key Economic Indicators

Exports & Imports

American Samoa's exports are significantly lower than its imports. In 2022, the total exports were around $19 million, while imports reached $368 million. The main exports include animal meal, packaged medicaments, and machinery, while imports focus on fuel, food products, and vehicles.

Balance of Trade

With a much higher import value, American Samoa has a negative balance of trade. This means the territory spends more on importing goods than it earns from exporting.

Infrastructure Development

The total road length in American Samoa is estimated to be around 260 kilometers (160 miles). The government is continuously working on improving road infrastructure, including bridges and rural access roads. Other infrastructural projects include upgrades to ports and airports to improve connectivity.

Fiscal Policy

American Samoa's fiscal policy relies heavily on financial assistance from the United States federal government. The government spends on public services, infrastructure development, and social programs. Taxation rates are generally lower compared to the mainland US.

Monetary Policy

American Samoa uses the US dollar as its currency. Since it doesn't have its own central bank, monetary policy is determined by the Federal Reserve Bank of the United States.

Trade Agreements

American Samoa benefits duty-free access to the US market under various trade agreements, including the Generalized System of Preferences (GSP). However, the territory itself has limited trade agreements with other countries.

Environmental Regulations

American Samoa has established environmental regulations to protect its natural resources, including water quality, air pollution, and endangered species. The American Samoa Environmental Protection Agency (ASEPA) is responsible for enforcing these regulations.

Tax System in American Samoa

Corporate tax rate: The corporate tax rate in American Samoa varies depending on the business activity. It generally falls between 20% and 30%.
Sales tax: There is a uniform 5% sales tax levied on most goods and services sold in American Samoa.
Property tax: Property tax is levied based on the property's value and location. Rates can vary.
Payroll tax: Payroll taxes in American Samoa fund Social Security and Medicare. The combined rate is 8.1% (6.65% for Social Security and 1.45% for Medicare). Employers contribute half (2.9% for Social Security and 1.45% for Medicare) and employees contribute the other half.
Tax deductions and credits: Tax deductions and credits are available to both businesses and individuals to reduce their tax liability. These can include deductions for business expenses, interest on mortgages, and charitable contributions. Specifics are available on the American Samoa Treasury Department website.
Tax compliance: The American Samoa Internal Revenue Service (ASIRS) is responsible for tax collection. While efficiency is improving, challenges due to limited resources remain.
Tax burden: The overall tax burden in American Samoa is generally considered lower than the US mainland.

Economy of American Samoa