8 Nov 2013

American Samoa business group says economy remains weak

12:03 pm on 8 November 2013

The American Samoa Chamber of Commerce says the present state of the economy and the proposed minimum wage increase will be it's main discussion points with the U.S. Government Accountability Office.

GAO officials are scheduled to be on island from November the 19th to conduct a follow up impact study on federally mandated minimum wage hikes for American Samoa.

The chairman of the Chamber of Commerce, David Robinson, says the territory's economy remains weak, particularly for small and medium sized companies, with little growth and tight cash flow.

He says some of the larger companies are reporting steady sales, but with little, if any real growth

Mr Robinson says there seems to be a mixed bag of predictions, with some retailers suggesting that sales this year will not be as strong.

He says, the present state of the economy would be severely impacted if another minimum wage increase, set for 2015, were imposed.

He says the cost of goods continues to rise and unemployment remains at a high level, while disposable incomes remain under pressure.