APIA, Samoa – Samoa’s economy shrank sharply in the year to June, with a steep fall in investment and businesses running down stocks driving an 8.1 per cent contraction.
The latest Samoa Bureau of Statistics (SBS) GDP figures show real gross domestic product fell from $2.507 billion in the 2024/25 financial year to $2.304b in 2025/26.
In simple terms, the 8.1 per cent contraction means that for every $1 of economic activity recorded the previous year, Samoa generated about 92 cents this year.
The biggest drag came from investment, which fell 33.9 per cent.
Investment covers spending on areas including construction and durable equipment, as well as changes in stocks or inventories held across the economy.
Construction investment fell 6 per cent, while spending on durable equipment dropped 12.3 per cent.
But one of the most significant shifts was in inventories.
In 2024/25, Samoa recorded an accumulation of $44.4 million in inventories. By 2025/26, this had swung to a $131.2m reduction.
The combination of weaker investment and the large reduction in inventories was the main driver of the overall economic contraction.
Spending and services provide brighter spots
Despite the headline fall in GDP, not every part of the economy went backwards.
Household spending increased 2.6 per cent, indicating consumers continued to spend despite the broader contraction.
Exports of goods and services also rose 2.3 per cent, while imports declined 1.8 per cent.
The export picture, however, was mixed.
Services exports increased 5.7 per cent, while exports of goods dropped sharply by 19.9 per cent.
Government spending on goods and services used to provide public services and run government operations fell by 5.3 per cent.
At current prices, Samoa’s GDP was valued at $3.620b for 2025/26, down from $3.800b the previous financial year.
Overall, the SBS figures point to a contraction driven primarily by falling investment and the significant rundown in inventories, while household spending and services exports provided some resilience.
The figures cover the financial year ending June 2026.