By Lagi Keresoma/
Apia, Samoa – 03 July 2025: The caretaker Minister of Finance, Lautimuia Uelese Vaai has confirmed that one of the key factors in the country’s current healthy state of economic growth is the $1million Districts Development Project (DDP) initiated by the FAST Government.
He said the development project injects $51m into development projects in all 51 constituencies and the money returns as a contribution to the economy.
Meanwhile, the Leader of the Opposition Party, Tuilaepa Sailele Malielegaoi has attributed the current healthy state of the economy enjoyed by the FAST Government to the hard work done by the previous HRPP Government.
In response, Lautimuia stated that the $1M District Development Project is the key component of the country’s economic growth.
He said when the FAST Government took office in July 2021, there was negative economic growth; and to make things worse, Samoa had reached is loan ceiling set by the international financial institutions as it had exceeded the 50% of GDP limit allowed for country loans.
“The economy was low, and we were not allowed to borrow from international financial institutions and it took the FAST Government only 4 years to bring down the international loans from $1.2bn to $800m and turn the economy around,” said Lautimuia.
The caretaker Minister of Finance, Lautimuia Uelese Vaai.
He reiterated that the country’s economy is in a healthy state and the international financial institutions have confidence in Samoa being able to borrow again due to the state of the economy. But the government had not taken out any new loan since it took office in July 2021.
Inflation Rate Low
Asked about the high inflation rate and high cost of living and what the government is doing about it, Lautimuia clarified that the inflation rate for Samoa is low and not as has been promoted by some people.
He clarified that people’s assumption that the inflation rate is high is based on the cost of a carton of chicken and milk alone rather than taking the conventional average cost of a basket of goods.
“The inflation rate is now down to 3%,” he said. “And one of the aspects countering the high cost of living is the current cash payout from the NPF contributions which amounts to $45m that is being injected into the economy,” he explained.
Political Parties Promises of Financial of Payouts
Some political parties have made known huge financial promises to entice voters in the August election.
Such offers include the HRPP’s COLA that amounts to $110m a year, its PELEGA pension scheme, and $2000 for newborn babies. The Samoa Labour Party (SLP) is promising a Social Welfare package of $2400 a month per household.
Asked about the reality of such political promises, Lautimuia said, “the challenge is how to fund and sustain such initiatives.”
He reaffirmed that the economy is good and stable state despite the national budget rejected by Parliament in May.
