10/08/2025
FOREIGN RESERVES $1.6 BILLION, PUBLIC DEBT UNDER CONTROL, REMITTANCES OVER $900,000
By: Nanai Taofiga Laveitiga Tuiletufuga
According to Finance Minister Mulipola Anarosa Ale Molio’o, the governments’ financial state of affairs are in order.
From Inflation, to the official gross foreign reserves, remittances, tourism earning, to employment, exports and public, everything is in order.
The following is from the Finance Minister’s Budget Statement tabled in Parliament this week.
INFLATION
To address the impact of inflation, Government implemented a Cost of Living Adjustment (COLA) in FY2023/24 and FY2024/25 for the public service.
In addition, the minimum wage was increased from $3.00 talā in FY2023/24 to $4.84 sene, and rolled out in stages – first increasing to $4.00 talā in July 2024, and $4.84 sene in July 2025.
OFFICIAL GROSS FOREIGN RESERVES
Samoa’s external sector has remained robust with Official Gross Foreign Reserves growing from $0.8 billion talā in FY2021/22, to $1.1 billion talā in FY2022/23, to $1.4 billion talā in FY2023/24, and reaching $1.6 billion talā in FY2024/25.
This increase translates to import cover improving from 10.9 months in FY2021/22 and FY2022/23, to 13.4 months in FY2023/24, and 15.2 months in FY2024/25.
Notably, Samoa reached the $1 billion talā reserve milestone for the first time in May 2023, marking a significant achievement as we concluded the celebrations of our 60 years of independence.
REMITTANCES
In tandem, remittance inflows have shown consistent growth, rising from $732.2 million talā in FY2021/22 to $832.1 million talā in FY2022/23, and further to $877.0 million talā in FY2023/24, culminating at $900.6 million talā in FY2024/25 – a reflection of substantial support from our diaspora community and seasonal workforce.
Following the approval of Samoa’s revised Policy for Temporary Labour Migration in August 2023, Samoa expanded participation in Labour Mobility Schemes with Australia and New Zealand at 6000 workers per country.
However, Samoa has not yet met the ceiling gap as set out in the policy due to implementation challenges. In terms of statistics, worker numbers surged from 5,634 in FY2021/22, to 8,336 in FY2022/23, and 9,812 in FY2023/24, although these numbers include the American Samoa scheme.
For FY2024/25, a total of 6,358 workers benefitted from the RSE and PALM Schemes combined while the Government acknowledges that these labour schemes have boosted remittances and fostered valuable skills development, it needs to take a much more balanced approach given the increasing social issues.
TOURIST ARRIVALS AND EARNINGS
After facing severe setbacks, our tourism sector rebounded following the reopening of borders in August 2022, attracting an inflow of 124,655 visitors and $421.01 million talā in visitor earnings.
By the end of FY2023/24, the cumulative number of visitor arrivals reached 175,656, with visitor earnings reaching $618.3 million talā. This upward trend persisted into FY2024/25, with final figures recording an increase to 189,937 visitor arrivals and total visitor earnings of $678.1 million talā, exceeding the FY2018/19 pre-pandemic record of $542.5 million talā.
Strong Government financial support to the Tourism Sector since FY2021/22 - through recovery grants, highly concessional loans, and investment incentives – has facilitated the opening of new hotels, including the Survivor Samoa Resort, Mulifanua Beach Resort, La’imoa Hotel, and the reopening of the Sheraton Samoa Aggie Grey’s Hotel and Bungalows, thereby increasing the number of accommodation rooms for tourists.
Further social and economic benefits have been realized through the diversification of tourist attractions and activities across communities. This included the development and upgrade of 57 eco-tourism, cultural, and historical sites.
The National Beautification Campaign, revived in partnership with communities, has also helped preserve our pristine environment, which was prominently showcased during CHOGM in October 2024.
In terms of our national carrier – Samoa Airways, tremendous work was done since 2022 to restructure its debts from $80 million talā at June 2022 to $10 million talā by June 2025, given activation of government’s guarantee and budget supports over the years.
Equity also increased by $87 million talā from a negative $54 million talā at 30 June 2022, to a positive $33 million talā at 30 June 2025. Total net profits after tax for the 3 years ending 30 June 2025 amount to $87 million talā compared to $93 million talānet losses during the previous 5 years.
This reflects Samoa Airway’s resilience in times of financial distress and Government’s commitment to turn around the technically insolvent national carrier.
EMPLOYMENT
Employment levels have steadily increased from 96,721 in FY2021/22, to 98,764 in FY2022/23, to 103,898 in FY2023/24, and to 104,976 in FY2024/25, reflecting increased employment opportunities in Samoa.
Under the DDP, 153 jobs were created through the establishment of District Council Offices. The program also supported community-based income-generating and employment opportunities through capacity building programs for sewing, farming, fishing, and carpentry amongst others. Furthermore, small business support initiatives and a Business Incubator initiative have empowered 66 community-based youth groups and young entrepreneurs, stimulating local economic activity.
EXPORTS
The value of total exports increased from $82.9 million talā in FY2021/22, to $119.0 million talā in FY2022/23, dipped slightly to $104.4 million talā in FY2023/24, and increased modestly to $105.0 million talā in FY2024/25, highlighting the impact of global trade dynamics.
Samoa’s main exports to date are fresh fish, coconut oil, and taro. To support this, Government has continued to prioritize climate- resilient infrastructure, particularly the road network to complement upgrades to plantation access roads under the DDP, therein improving connectivity and facilitating the efficient movement of our agricultural exports. The DDP also supported community fishing businesses.
PUBLIC DEBT
Since FY2021/22, public debt has followed a consistent downward path, evident in the total debt stock declining to $760.4 million talā in FY2024/25 – a decrease of $189.1 million talā. As a percentage of GDP, this is a reduction from 41.0 percent in FY2021/22, to 31.8 percent in FY2022/23, 25.2 percent in FY2023/24, and 21.2 percent in FY2024/25.
To date, the Government has fully repaid and closed six loans; inclusive of five external loans (3 with the Asian Development Bank, 1 with the World Bank IDA, and 1 with OPEC), and one domestic loan from the Unit Trust of Samoa for the Samoa Trust Estates Corporation.
