Senate calls for study to determine impact of COVID-19 on the economy

Pago Pago, AMERICAN SAMOA — Due to “upsetting economic trends” and the high cost of living the Senate is calling on the American Samoa Government to conduct an economic impact study on COVID-19 and how it relates to the American Samoa cost of living.

This is outlined in a Senate Resolution introduced yesterday. The Senators are concerned that despite the huge strides made by ASG and the declining number of positive cases, the cost of living, including the cost of goods and food continues to rise. 

The Senate is seeking the governor to direct the Department of Commerce to conduct an economic impact study for American Samoa starting from the beginning of the pandemic in 2019. 

 “The recommendation shall also include a request to provide solutions or measures the territory can take to alleviate the growing cost of living for our residents.”

The senators point out in their resolution that their constituents are concerned that the cost of living will continue to increase, despite the improving situation with COVID-19.

Furthermore the resolution cites the latest American Samoa Consumer Price Index report, released in June 2022, which indicates the inflation rate is now at 11.8%. 

 “In this inflation rate the food group has recorded a quarterly increase of 1.5%. “Compared to last year, the overall cost of food has gone up by 16.3%.

 “About half of all food items monitored have increased this quarter.  Some popular items include eggs – up 22%, rice – up 5%, and chicken wings – up 16%. 

 “Eggs have been in short supply again this quarter.”  Butter cost $3 in 2018 and costs $3.82 in 2022. 

 “The bread which cost $2.11 in 2018 now costs $2.88 in 2022.  A case of chicken legs which cost $11.77 in 2018 now costs $16.57 in 2022.

 “Turkey tails which cost $1.16 in 2018 now cost $2.30 in 2022. The same report states in group 5 — transportation, it has increased by 5.1%. 

 “Gasoline by itself went up by 11% this quarter.  The cost of new vehicles and automotive repairs have also contributed to the annual increase of 16.4%  and in addition, construction supplies have also increased tremendously. 

 “Plywood 2x4x16 which used to cost $12.99 in January 2021, increased to $20.90 in January 2022, and then increased again to $21.91 in April 2022. 

 “A 40-pound bag of cement cost $8.45 in January 2021, increased to$14.95 in January 2022, and then increased again to $15.10 by April 2022. 

 “A 4x8 piece of drywall that cost $15.99 in January 2021, increased to $18.89 in January 2022, and then increased again to $20.65 in April 2022.  Exterior paint cost $34.83 in January 2021.  It increased to $42.26 by January 2022 and increased again to $44.19 by April 2022.”

The resolution says due to these upsetting economic trends, the Senate is concerned the cost of living will just continue to increase exponentially to the point where our residents will struggle just to purchase basic needs like food, fuel, and building materials. 

This despite LBJ has treated only 1 new case of COVID-19 in the past 7 days and there have been no new hospitalizations and no fatalities with fewer than 15 active cases in the territory, according to the latest DoH report.

The resolution says that due to all of the safeguards put into place by former Governor Lolo M. Moliga and by current Governor Lemanu P. Mauga, American Samoa’s COVID numbers were never as high as they could have been, with 34 deaths reported due to the virus from the beginning of the pandemic until now.