Food, beverage manufacturing declined in 2018 – report says
Food and beverage manufacturing registered a decline in real value-added of 7.9 per cent, making it the first quarter of negative growth for the industry.
According to the September 2018 Quarter GDP Report that was published by the Samoa Bureau of Statistics, this follows two consecutive quarters of positive growth.
“This weak performance by the industry correlates with reduced production of beer and soft drinks in the period compared to the corresponding period of 2017,” stated the report.
The industry contributed -0.3 per cent to the overall growth rate and 3.3 per cent total gross domestic product of Samoa.
Other manufacturing recorded a total value added of $18.8 million in the same quarter, but dropped by 6.6 per cent when compared to the September 2017 quarter.
“This continuous poor performance by the industry resulted in a negative contribution of 0.3 per cent, to the overall GDP growth in the period.
The report said the industry has not been performing well, since the closure of the biggest manufacturing company in the country, resulting in a notable 61.1 per cent decline in employment.
“The performance in September 2018 makes it the sixth consecutive quarter of negative performances by the industry.”
Construction was another industry that recorded a negative growth for the same quarter, declining by 12.2 per cent when compared to the September 2017 quarter.
“Construction was the leading negative contributor to overall growth with a -1.2 per cent points contribution.
“This fall was driven by a decrease in heavy and civil construction as major construction activities continued to wind down.
“This was reflected in the 4.1 per cent drop in the volume of imports of building materials in September 2018.”
Value added generated by the industry was down by 18.4 per cent when compared to the previous quarter.