Guam economy depends largely on US military spendings. Tourism industry is also a major contributor to Guam's economy. In fact, it was Guam's tourism industry that helped the country to come up with new hotels, golf courses and other tourist attractions.
In 2005, CIA's World Factbook estimated Guam's GDP at $2.5 billion. GDP per capita stood at around $15,000 in 2005. Sector-wise breakup of Guam's GDP shows that services (more than 70 percent) contribute the most, followed by industry and agriculture.
According to 2005 estimates, inflation in Guam was about 2.5 percent.
Imports and exports
CIA World Factbook reveals that imports worth more than $700 million were brought into Guam. Major import commodities included petroleum, petroleum products, manufactured goods, and food. Major import partners for Guam economy included Singapore, South Korea, Japan, and Hong Kong. Singapore accounted for half of Guam's imports.
Exports worth nearly $45 million were brought into Guam. Commodities like refined petroleum products, fish, food, construction materials, and beverage, were exported to other countries. Major export partners for Guam included countries like Japan, Singapore, and UK. Japan accounted for more than 65 percent of Guam's exports.
Guam's economy is heavily dependent on US grants and wage payments. Though tourism industry has been able to lessen its dependence on US military, it still has some way to go before becoming the most important contributor to Guam's economy. Most industrial products and food are imported into Guam.
Future of Guam
Tourism sector holds lot of promise for Guam. More than a million visitors travel to Guam from countries like Japan, Taiwan, and South Korea. Majority of travelers to Guam are Japanese(nearly 90 percent). In future, economy of Guam is likely to be more dependent on tourism than US military grants.