As the news in the last few days on the worsening crisis in financial and stock markets around the world came through, the reality of global interdependence is expected to affect the future economic prospects for Samoa. Although Samoa is in the middle of the Pacific ocean and is often described as geogrpahically isolated, its economy is now expected to experiece a major shock from the following fallout from the global economic meltdown:
 

• Export enterprises like Yazaki are expected to get an immediate hit from the rapid fall in demand in the overseas markets.Yazaki which which assembles wire harnessing for its main clients like Toyota will now experience an immediate drop in demand for their products.
• The Samoan Finance Centre which has become the main financial centre in the Pacific for the Asian companies is expected to experience a rapid fall in the volume of transactions as the Asian export companies relying mainly on the US markets slow down.
• The overseas remittances into Samoa particularly from the USA are expected to drop as the overseas based Samoans get caught in the mass layoffs as the recession deepens in the USA.The only saving grace is that a major portion of the remittances into Samoa are mainly from secure sources like welfare or social security payments
• The tourism industry is expected to slow down within the next 12 months. With at least 90 percent of tourists coming from New Zealand and Australia, the slow down in tourism is not expected to be as severe as the current sharp downturn experienced in countries heavily dependent on US tourists.
• The construction sector in Samoa is not expected to have any significant decline as the major construction projects are funded mainly from aid grants and soft term loans

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where is tango ?
written by miket, October 10, 2008

US is a major allies for the world stock market . like you mentioned asia is depending on US stock market.

it will take time!
written by miket, October 10, 2008

eventually will pick up again but it will take time.

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