This afternoon the Minister of Economy and Labour, the Hon. Jason Hayward, JP, MP, held a press conference.
To access the Quarterly Gross Domestic Product Q1 - 2024 report, visit https://www.gov.bm/quarterly-gross-domestic-product, and the Balance of Payments & International Investment Position Q1 – 2024 report is available online at https://www.gov.bm/balance-payments.
Good day to members of the media and the listening public.
Quarterly GDP and Economic Performance
Bermuda's economy has demonstrated notable growth and resilience. During the first quarter of 2024, Bermuda’s economy grew by an estimated 7.1 per cent, adjusted for inflation, signifying strong expansion compared to the same period in the previous year. This economic growth resulted from increased household expenditure and a rise in the export of goods and services.
In current prices, GDP increased by 8.7 per cent during the first quarter, highlighting the additional impact of rising implicit prices.
Evidenced by both real and nominal GDP figures, such growth highlights the economy’s resilience and the effectiveness of supportive government policies and prevailing market conditions.
Consumer Spending
Consumer spending in the first quarter increased 1.2 per cent year-over-year to $793.4 million. This increase reflects modest yet positive growth in the total amount of money consumers spent on goods and services during the quarter.
Household Consumption of services increased 1.1 per cent year-over-year, reflected in higher expenditure for catering, cleaning and medical services. Meanwhile, spending on durable goods grew by 4.3 per cent, with notable increases in purchases of jewellery, clocks and watches, furniture and furnishings, and photographic equipment.
This increase in consumer spending in Bermuda's first quarter demonstrates a positive economic environment, with growth in both service consumption and investment in durable goods.
Employment Income
In the first quarter of 2024, employment income rose by 11 per cent compared to 2023 levels. Notable increases in employment income were observed across various industries, including:
-
International Business (17.1%)
-
Hotels & Restaurants (6.7%)
-
Banking Insurance & Real Estate (8.2%)
-
Business Services (2.2%)
-
Wholesale & Retail (1.3%)
-
Public Administration & Defense (7.4%)
-
Transport and Communication (14.9%)
This growth in employee remuneration across these sectors reflects positive economic performance.
Tourism
Tourism, which is vital to Bermuda’s economy also showed growth. In the first quarter of 2024, Bermuda welcomed 25,761 air visitors, an increase from 24,661 in 2023. Visitor’s estimated expenditure also rose, reaching $52.6 million, up from $48.7 million the previous year.
Government Expenditure
Government consumption increased by 6.9 per cent in the first quarter, a significant improvement over the 4.0 per cent decline experienced in the same period last year. This rise is mainly attributed to increased expenditure on salaries.
Business Investment
Gross Capital Formation remained relatively steady, with a slight decline of 1.0 per cent to $201.6 million. Although investment in construction fell by 6.8%, investment in machinery and equipment saw a positive increase of 5.1%, driven by higher imports of trailers, semi-trailers, machinery parts, and industrial machinery.
The External Balance of Goods and Services
Bermuda’s Trade Balance improved by 16.4 per cent to $800.4 million, as the increase in receipts from the export of goods and services exceeded the growth in payments for imports. Exports of goods and services grew by 10.8 per cent during the quarter, with a notable contribution from higher receipts related to business services. This improvement underscores Bermuda's increasing competitiveness in international markets.
Business Registrations
Business confidence continues to rise, as demonstrated by a year-over-year increase in new business registrations. The business register grew to 16,186 total businesses, with 152 new businesses registered in Bermuda during the first quarter of 2024.
Conclusion
The Government is committed to fostering the expansion and sustainability of Bermuda's economy by cultivating a business environment that allows businesses to thrive. As we move into the remainder of 2024, the Government will continue to execute the strategic initiatives outlined in Bermuda’s Economic Development Strategy to ensure sustainable economic growth and development. We remain focused on ensuring this momentum continues, supporting businesses, and creating jobs for the people of Bermuda.
For more information, please review the Quarter 1, 2024 Quarterly GDP by Expenditure publication available at the Department of Statistics online at gov.bm.
Thank you.