Bermuda’s GDP Decreased By 1.4% In 2012

September 12, 2013

In 2012, Bermuda’s Gross Domestic Product [GDP] — which measures the total value of goods and services produced in Bermuda — fell by 1.4 per cent, and when adjusted for inflation, the growth in economic activity declined 4.9 per cent.

A report released today by the Department of Statistics said, “Continued job losses and business closures adversely affected production, leading to the fourth consecutive year of negative growth.

“Ten of the fifteen industries experienced lower economic activity, with the strongest impacts felt in the manufacturing, construction and electricity generation industries.”

Overall, the decline in economic growth translated into a 1.6 per cent fall in GDP per capita which was measured at $84,381 per person in 2012.

The report said, “At the end of the year, 292 fewer international companies were registered in Bermuda with 210 fewer jobs available in the industry. Despite these job cuts, the international business industry still
remained the largest private sector employer.”

The value added for the hotel and restaurant industries fell 6.4 per cent in 2012, while activity in the transport and communication industry increased 1.1 per cent, marking the first increase since 2008.

In 2012, construction activity fell 11.8 per cent to $180 million, with the reports saying the completion of major construction projects and a decline in large projects coming on line adversely affected activity.

The full report courtesy of the Department of Statistics is below [PDF here]

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  1. Double Standards says:

    OBA’s fault…

    • Mike Hind says:

      Haaaahahahaaaaaa

      • Double Standards says:

        Not funny at all…

        These guys had THIRTEEN days at the end of 2012 to turn it around and fulfill their campaign promises…but they didn’t…that’s because they only like rich people while they have proven to hate children, black people and Bermudians in general because Roban ,Burgess and Desilva et al say so.

        I want this lot out for overseeing another economic contraction and want to put the Party back into power that:

        - Had four consecutive qualified audits issued by the AG

        - Oversaw four straight years of economic contraction (funny how the qualified audits followed that trend)

        - Breached numerous financial instructions which were created to ensure proper handling of taxpayer dollars as revealed by both the AG and Ombudsman

        - Increased Government debt by more than 800% in less than 5 years

        - Was responsible for allowing capital projects to incur overruns that cost the taxpayer hundreds of millions of dollars (imagine how that $$$ could be used nowadays)

        - Spent tens of millions on one capital project that had to be modified by the new Government to the tune of a tens of millions of dollars

        - Issued the highest amount of work permits in BDA’s history, despite the failing economy

        - Found money to pay the Board members $160k for a 16 page report

        - Found money to ensure their paychecks remained untouched

        - But could not find the money to continue to fund social programs such as Mirrors, or for charities such as the Salvation Army and Sunshine League

        - Fired a whole DoT team in favor of a US firm, that was fired only a few months later

        - Commissioned a foreign artist to produce a sculpture of a Bermudian pioneer, Dame Lois

        - Sold out Bermuda’s future to oversees bond holders while denying Bermudians a chance to own their own debt

        - Assisted in the destruction of our one economic pillar without seeking alterative revenue sources (but now they do! Amazing what an election can do to one’s thinking)

        - Raised both the payroll tax and foreign currency purchase tax in the middle of a recession

        - Raised duty tax across the board, making BDA that little bit more expensive

        So I say let’s kick these lot out after less than a year in power because it is solely their fault as to why we are in the position we are in today.

        I mean look at those fine examples of progressiveness and fiscal prudence I outlined above exemplified by the Opposition during their reign. In just 8 months out of power they have proven they are ready to take the reins again and bring us back to the promise land!

        PLP ALL THE WAY!!!

    • Anon Ymous says:

      Ok, imagine this, the Captain of Oleander is late and is not giving his work the full attention it requires, headed into Hamilton harbor; the ship is still hitting 20 knots as they pass Albouys – Not nearly enough time to slow sufficiently and dock safely at the wharf – Unfortunately, the captain, having failed to think ahead that far, realizes his misjudgment, only upon reaching Whites Island, and subsequently steps back to let the first mate take over the controls for the inevitable catastrophe….

      Now, who’s fault is the crash, Captain or First Mate?

      • Double Standards says:

        OBA’s fault…

      • Terry says:

        The Pilots fault.
        Next.

      • Zombie Apocalypse says:

        I see your point.

        Another example:

        As the bus crashes through the barrier and goes sliding over the side of the cliff, the driver gives up and and hands over the wheel to a nearby passenger, who is left to do his best to bring the bus under control.

        Who is at fault there as the bus slides dangerously down the cliff…the original driver, or the bystander who now has the controls?

        • Vote for Me says:

          To complete the original analogy, the question would be whether or not it makes sense to change the pilot or let him remain and correct his error? The example would also have to include him having enough time to make the correction and having the courage to do so.

          Now who shoud dock the Oleander? The orignal pilot or teh First Mate??

          • Bermuda Male says:

            Unfortunately the pilot did not have the courage (few in party politics do) nor the time…

      • Time Shall Tell says:

        To better translate the original analogy. Captain P at helm realizes the situation & before is able to make the proper correction to avoid the catastrophe, here comes Captain O. Now Captain O is waiving credentials, making claims to have the skills & experience on how to prevent this pending catastrophe. On hearing this all the passengers choose to lay their fortunes on Captain O…. Sadly Captain O was just full of promises & failed to deliver on them to prevent the pending catastrophe……

        • Double Standards says:

          Well then if it took until 2012 for Captain P to realize that we were/are heading towards a catastrophe, then they he/she had neither the foresight or experience to identify the issues and thus would not possess the necessary characteristics to address the problem.

          If one remembers one of Capitan O’s crew advised several years ago that the Bermuda economy was overheating and that the bubble will burst. Captiain P, and her/his crew, admonished Capitan O and his crew for nothing but fear mongering and stating that they “would rathe rhave an overheating economy as opposed to a luke warm one.”

  2. David Henry says:

    Not a pretty picture. Have we really turned a corner? It seems the only thing that made this year’s GDP figure better than last’s is inflation. If you take out inflation, 2012 was only slightly better than ’09 (the worst year for BDA as far as GDP is concerned). To add to that, it looks like inflation is now at its worst/highest in five years.

  3. Navin R. Johnson says:

    Guess the green shoots that Ms Cox went on and on about were a myth

    • DragginAnchor says:

      @Navin, maybe the perception of myth is a matter of perspective. From her point of view Ms. ‘cog’ Cox’s personal garden doubtless looks pretty good – certainly better than the larger garden she left to her successors.

      I’m sure everyone has noticed her continued appearances at POC, as she drives up in a Toyota Camry XLE wearing ordinary personal license plates even though the car is far too large to be legally licensed as a personal auto. The car bears an odd resemblance to a GP car that was assigned to her during her tenure.

      Those green shoots have certainly flowered for her. I guess maybe you can take it with you after all…

  4. Who that cap fit says:

    The former govt killed all economic activity.6yrs and counting of decline.Wait until you see the figures of 2013 in their entirety,frightening.Unemployment is going to grow,crime will rise and more will need social assistance.There is only one problem,we are BROKE!
    The PLP saw to that,as they and friends and family took advantage of those untendered govt contracts.Now the poor are poorer and Bermuda is in an economic DEPRESSION!

    • AwayFromHome says:

      I disagree. Did you forget that there was a global recession?

      • Mike Hind says:

        No one has forgotten that.

        Did YOU forget how badly that recession was handled?
        Did you forget how the mismanagement and overspending left us poorly prepared to handle the recession?

        • yesman says:

          Government spending didn’t impact private sector jobs. It may have temporarily gave a boost to construction at the time but that’s about it.

          We lack leadership and proper forward thinking. Bermuda is very conservative and change is like a damn taboo. Unfortunately, the people of Bermuda actually like it this way.

          The truth is we are just not an appealing destination for international business or tourism. Until our product changes things will remain the same.

      • micro says:

        Do you forget the PLP mantra of “Bermuda seems to be immune”, “There’s nothing wrong with our economy”, “we’re not being effected”?

      • Navin R. Johnson says:

        Almost all of our business comes from the US…the US has been out of a recession for over two years and still you go on about the Global recession? The cause of our problem is simply an incompetent ,inept PLP Government who had no sense of how to manage the economy…the ill fated tax increase by Paula Cox in 2010 was the final straw that sent OB packing and the task of the new Government is massive to try to right the wrongs of the PLP….and still the Marc Beans and Wayne Furberts have the balls to question anything? .

        • m3ke says:

          I’d like to see if government spending increased over the entire 14years or relatively stayed the same including the cost overruns.

          I’d also like to see government revenues for that same period of time to compare and contrast.

          Does anyone know of a link or website that has this information?

  5. Vote for Me says:

    Hopefully we will start to receive this type of information in a more timely manner, perhaps quarterly and not 9 months late (even if we have to use reasonable estimates)

  6. Victor says:

    That’s cause we were still all Cogged up…