Imports dropped 40% in 1st Quarter reflecting pandemic impact

Total imports to the Republic of Palau dropped by 40.9% this 1st Quarter of 2021 compared to same time last year according to the reports issued by Bureau of Budget & Planning under the Ministry of Finance.
Imports dropped in all groups with exception of chemicals and pharmaceutical products. Correspondingly, the total number of inbound containers of ocean cargo dropped by 19.4% in the same quarter compared to same period last year.
These declines are attributed to the impact of the COVID-19 pandemic on tourism related activities and consumer buying power.
Other indicators include 25.1% decline in business gross receipt tax (BGRT) collections this quarter compared to the same period in 2020. Also number of business that failed to file quarterly tax rose to 315 from 151 in 2020.
Industries that showed biggest decline were Transportation and Storage, Accommodation and Food Service Activities, Administrative and Support Services, Professional, Scientific and Technical Activities. Transportation and Storage declined by over 85%, Accommodation and Food by 76% and Administrative and Support by 70.4%.
The only positive growth in the 1st quarter of this year was in Real Estate, Mining & Quarrying and Agriculture and Forestry industries.
Construction showed decline in GRT by 10%, 12% drop in wage tax and 16% drop in employment numbers and these are attributed to near completion of many infrastructure projects, housing and commercial projects.
Other indications include drop in number of business licenses issued compared to same period last year as well as decline in employment numbers. Overall employment numbers dropped by 5.7% with exception of employment increase in the Public Administration, Agriculture & Fishery and in Mining & Quarrying.
Lastly, this March 2021 quarterly report showed that 8 Foreign Investment Approval Certificates (FIAC) were issued this quarter compared to 5 in March of 2020. Earthmoving permits approved this quarter actually went down by 19%. Last year during the same period, EQPB issued 103 earthmoving permits which include 22 commercial, 20 government and 61 residential. This 1st quarter 2021, only 84 permits were issued, 12 commercial, 22 government and 50 residential.
Finally, there was a decrease in consumer price index by .07. The report says, prices remained constant to last quarter, in other words, some prices went up and others went down, overall, there was little annual price change this quarter.