Good Day to Members of the media and the listening public.
I am happy to share that Bermuda's economy continues to expand and demonstrate positive economic performance. During the 2nd quarter of 2023, the Bermudian economy grew by an estimated 2.3 per cent year-over-year after adjusting for inflation.
Economic expansion was a direct result of increased household and Government expenditure and Business Investment. GDP in current prices increased by 3.9 per cent during the second quarter.
Additionally, the 1st quarter GDP Estimates have been revised upward from a 3.6 per cent increase to a 4.6 per cent increase. This signifies the strong half-year economic performance of Bermuda’s economy.
Consumer Spending
Consumer spending in the first quarter increased 3.6 per cent year-over-year to $809.1 million. Consumption of services increased 5.1 per cent year-over-year, reflected in higher expenditure for air transport, catering services, and personal care services. Spending on durable goods rose by 5.4 per cent due largely to increased expenditure on furniture, furnishings, and new motorcycles.
Employment Income
Employment income in the Second quarter was 3.8 per cent above 2022 levels. Employment income in the following industries all increased in the second 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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Business Services
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Wholesale & Retail
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Public Administration
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Construction
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Transport and Communication
The Second-quarter growth in employee remuneration in these sectors is positive, and the income levels are also outpacing pre-pandemic employment income levels.
Tourism
The island hosted 62,477 air visitors during the Second quarter of 2023, up from 48,646 in the Second quarter of 2022. Estimated expenditure by air visitors increased to $110.8 million from $97.8 million recorded in the same period of the previous year.
Government Expenditure
Consumption by the Government increased 3.5 per cent during the quarter, with higher expenditure on wages, salaries, and personnel training.
Business Investment
Furthermore, Gross Capital Formation, also known as business investment grew 1.0 per cent to $212.1 million during the quarter. Investment in machinery and equipment increased by 5.5 per cent due to higher imports of special purpose motor vehicles, radio navigational aid apparatus and medical equipment. Investment related to construction fell 3.2 per cent.
The External Balance of Goods and Services
Bermuda’s Trade Balance rose by 0.1 per cent to $442.7 million as a result 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 2.7 per cent during the quarter, partly due to increased receipts related to travel services.
Business Registrations
Bermuda’s business ecosystem remains robust, and total business registration increased year-over-year, bringing the complete business register to 16,226. There were 173 new businesses registered in Bermuda during the Second quarter of 2023.
Conclusion
The Government continues to facilitate the expansion and sustainability of Bermuda's economy by creating a business environment that allows businesses to thrive. The Government will continue to execute the strategic initiatives outlined in Bermuda’s Economic Development Strategy to ensure Bermuda experiences sustainable economic growth and development.
For more information, I urge the public to review the Quarter 2, 2023 Quarterly GDP by Expenditure publication which is available at the Department of Statistics website at https://www.gov.bm/quarterly-gross-domestic-product.
Thank you.