GAO report: CNMI at risk of severe financial crisis
The CNMI economy is in further decline and “faces serious fiscal risks,” according to a Government Accountability Office (GAO) report released Tuesday on public debt and the economic outlook of U.S. territories. The Commonwealth’s total public debt stands at $121.1 million, approximately 13 percent of our GDP. The GAO noted that the CNMI’s tourism-dependent economy shows limited signs of recovery, with challenges in meeting financial obligations growing more severe. Tourism remains well below pre-pandemic levels, while the closure of casinos and hotels has worsened unemployment and slowed recovery. Persistent pension liabilities and long-standing delays in completing single audits and financial statements further complicate debt management. The GAO identified common barriers to sustainable growth and debt repayment across all U.S. territories including high import costs for energy and goods, vulnerability to natural disasters, undiversified economies, and continued outmigration. As mandated by Congress in 2016, the GAO conducts a biennial review of public debt in the U.S. territories.