Today the Cabinet Office released the Quarter 2, 2021 Quarterly Gross Domestic Product (GDP) by Expenditure publication.
After adjusting for inflation, the GDP in constant prices increased 13.6% in the second quarter of 2021.
There were increases in several sectors during the second quarter, as growth reflected a rebound in economic activity compared to 2020.
Some key highlights of the 2021 2nd quarter are as follows:
Ø Household Final Consumption increased 12.3% year-over-year to $737.3 million.
Ø Non-durable and semi-durable goods spending rose 15.6% with increased purchases of fuel, clothing purchased locally and goods purchased while overseas on travel and declared on return to Bermuda.
Ø Spending on durable goods grew by 51.0% due largely to increased expenditure on motor vehicles.
Ø Consumption of services increased by 9.6% year-over-year. This is due to higher expenditure for passenger transport by road, air transport, catering services and personal care services.
Meanwhile Government Final Consumption saw a 5.6% decline during the quarter due mostly to lower payments for wages, salaries and employee overheads.
While in contrast, expenditure related to professional services grew by $5.1 million or 80.7%.
Gross Capital Formation (i.e. investment in fixed assets) grew 34.6% to $203.4 million.
And Gross Capital Formation related to Construction registered a 25.6% increase. This reflected the completion of the St. Regis Bermuda Resort and the addition of 26 units to the stock of residential dwellings.
Investment in Machinery and Equipment increased 46.0% attributed to the importation of computers, transport equipment and furniture.
And the External Balance of Goods and Services increased 18.1% to $397 million.
Growth was reflected mostly in the Exports of Goods and Services, which rebounded 19.2% due to increased visitor expenditure and revenue earned from legal, accounting and management services.
Exports of goods also increased during the second quarter as more fuel was sold to visiting airlines.
Imports of Goods and Services increased 20.3% as payments rose for sea freight transport in line with the increase in imports of goods across all commodity groups.
Imports of air passenger transport services and travel services also grew as residents took more international trips compared to the previous year.
Minister Furbert said, “As the public will appreciate, last year our economy was significantly challenged due to the pandemic. However our second quarter GDP numbers are showing encouraging signs of growth and activity in many sectors of our economy.
“We know that there are still some challenges that we will need to overcome. But this Government remains confident that the Economic Recovery Plan (ERP), which is well underway, will provide a blueprint for a successful recovery.”
Bermuda’s Economic Recovery Plan has 31 priority projects in 7 broad categories:
Ø Economic Diversification;
Ø Financial Markets;
Ø Infrastructure Investment;
Ø Expanding the Residential Population;
Ø Labour Market & Social Development;
Ø Healthcare Reform; and
Ø Regulatory Reform
Minister Furbert concluded, “Some of these 31 projects have been completed and steady work continues on the others. These projects will help in rebounding our economy and are considered the best programmes aimed at creating economic growth, while meeting the objective of increasing jobs, diversifying our economy, and enhancing Bermuda’s infrastructure for the future. These initiatives will ensure that Bermuda forges a new path to growth, employment and greater equity.”
To review the Quarter 2, 2021 Quarterly GDP by Expenditure report, visit https://www.gov.bm/quarterly-gross-domestic-product.
The public can learn more about the policies under the Economic Recovery Plan by visiting https://www.gov.bm/economicrecovery-updates.