Good day to Members of the media and the listening public.
Bermuda's economy continues to expand and demonstrate positive economic performance. During the 3rd quarter of 2023, Bermuda’s economy grew by an estimated 8.3 per cent year-over-year after adjusting for inflation. This marks the fastest pace of growth in the last two years and the 4th consecutive quarter of real economic growth.
Economic expansion in the third quarter was a direct result of the increase in the external balance of Goods and Services along with an increase in Household and Government expenditure. Gross Domestic Product (GDP) in current prices increased by 8.9 per cent during the third quarter.
Additionally, the 1st quarter GDP Estimates have been revised downward from a 4.6 per cent increase to a 4.5 per cent increase, and 2nd quarter estimates have been revised upwards from a 2.3% increase to a 3.9% increase. The 3rd Quarters GDP estimates signifies three quarters of strong economic performance in 2023 for the Bermudian economy.
Consumer Spending
Consumer spending in the third quarter increased 3.1 per cent year-over-year to $812.1 million. Consumption of services increased 2.2 per cent year-over-year, reflected in higher expenditure for air transport, catering services, and personal care services.
Spending on non-durable goods rose 3.1 per cent influenced primarily by increased spending on electricity, clothing and footwear, and tobacco.
Spending on durable goods rose by 0.8 per cent due to increased expenditure on furniture and furnishings, and telecommunication equipment.
Employment Income
Employment income in the third quarter was 7.1 per cent above 2022 levels. Employment income in the following industries increased in the third quarter of 2023:
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International Business
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Hotels & Restaurants
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Banking Insurance & Real Estate
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Wholesale & Retail
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Construction
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Transport and Communication
The third-quarter growth in employee remuneration in these sectors is positive, and the income levels continue to outpace pre-pandemic employment income levels.
Tourism
The island hosted 61,451 air visitors during the third quarter of 2023, up from 52,065 in the third quarter of 2022. Estimated expenditure by air visitors increased to $111.5 million from $75.3 million recorded in the third quarter of 2022.
Government Expenditure
Consumption by the Government increased 4.5 per cent during the quarter, with higher expenditure on insurance, salaries, and materials and supplies.
Business Investment
Gross Capital Formation dipped by 0.9 per cent to $203.4 million. Investment related to construction declined 4.9 per cent. However, investment in machinery and equipment increased by 3.0 per cent due to higher imports of medical and transportation equipment.
The External Balance of Goods and Services
Bermuda’s Trade Balance rose by 31.3 per cent to $387.2 million because of growth in receipts for the export of goods and services, outpacing the growth of payments for the import of goods and services. Exports of goods and services increased by 9.4 per cent during the quarter, due partly to increased receipts related to travel services. Imports of Goods and Services decreased 5.4 per cent as payments fell with lower imports of fuel, finished equipment, and basic materials along with semi-manufactured goods.
Business Registrations
Bermuda’s business ecosystem remains robust, and total business registration increased year-over-year, bringing the complete business register to 16,307. There were 314 new businesses registered in Bermuda during the third quarter of 2023.
Conclusion
The third quarter economic performance highlights that Bermuda’s economy continues to strengthen. The Government will continue to facilitate the expansion and sustainability of Bermuda's economy by creating a business environment that allows businesses to thrive. The Government’s focus will shift primarily to execution of the strategic initiatives outlined in Bermuda’s Economic Development Strategy to ensure Bermuda experiences continued economic growth and development.
For more information, please review the Quarter 3, 2023 Quarterly GDP by Expenditure publication available at the Department of Statistics online at gov.bm.
Thank you.