Today the Minister for the Cabinet Office the Hon. Wayne Furbert, JP, MP, released the 2018 Gross Domestic Product (GDP) publication and a Bermuda GDP Rebasing publication from the Department of Statistics.
The 2018 GDP publication reflects changes to the industry structure and levels of the annual GDP estimates. These changes are the result of an updated Supply and Use Table (SUT) for Bermuda as part of the implementation of the 2008 System of National Accounts (SNA), which serves as the international statistical standard for the production of statistics on GDP.
The Minister explained, “The exercise to update the SUT and the GDP base year was a collaborative process between the Caribbean Technical Assistance Centre and the Department of Statistics over a five-year period ending in August 2019. The DOS finalized a SUT with 2013 data as this was the most recent year with supporting data from the Household Expenditure Survey (HES). The finalized SUT allowed for replacing the outdated 2006 base year for estimating GDP in constant prices which is used to measure real growth rates in the Bermuda economy. The updated GDP estimates will give a realistic and integrated view of the economy that is more suitable for policy and analytical use and reflects more closely the current economic dynamics.”
Based on the balanced SUT, the GDP level in current prices for the base year 2013 has been revised up by 14.5 percent. The increase in the rebased GDP series is not uncommon, as other countries which implemented recent rebasing and application of the 2008 SNA showed the following increases in GDP in current prices: Cayman Islands +27.5 per cent in 2015 GDP; Maldives +19.5 per cent in 2014 GDP; Tanzania +27.8 per cent in 2013 GDP; Kenya +25.3 per cent in 2013 GDP; Bahamas +27.6 per cent in 2012 GDP; and Zambia +25.2 per cent in 2010 GDP.
Highlighted below are some key results from the 2018 GDP publication:
- GDP in constant prices (real terms) for 2018 was measured at $6.5 billion, a 0.1 per cent increase over 2017. In current prices GDP increased 1.7 per cent.
- The largest increases in absolute real terms were recorded for the Construction and Quarrying industry and the International Business industry which grew by $33.9 million and $24.7 million, respectively.
- Value added for businesses involved in Financial and Insurance Activities increased 0.9 per cent or $7.9 million. This growth was attributed mostly to a rise in the value of premiums received by non-life insurance companies.
- Value added for Human Health and Social Work increased 2.8 per cent or $9.0 million in 2018 due mostly to private health activities.
- Value added for Real Estate Activities rose 1.8 per cent or $16.8 million due mostly to a rise in the imputed rent for owner-occupied dwellings as well as an increase in real estate activities with leased property.
The 2018 GDP publication and GDP Rebasing document are available online at https://www.gov.bm/annual-gross-domestic-product.