Statistics Report: Real GDP Down By 0.1%
According to the Gross Domestic Product [GDP] report released by the Department of Statistics, the real GDP decreased 0.1% to $4.6 billion in 2016 — with the report noting that “the GDP analysis has shifted to focus on Real GDP compared to Nominal GDP as in previous publications.”
Real GDP down by 0.1%
The report said, “Real GDP decreased 0.1% to $4.6 billion in 2016. Values for real GDP are adjusted for inflation to remove the impact of changes in price levels, providing a more accurate figure of economic growth.
“The largest value declines in real terms were recorded for the financial intermediation and international business industries which decreased by $35.1 million and $28.6 million, respectively. In contrast, the construction industry recorded the largest gain in value added of $13.2 million.
“In 2016, average price levels as measured by the selected basket of goods and services in the Consumer Price Index [CPI] increased 1.4%.
“Alternatively, average price levels for all goods and services produced in the economy [economy-wide inflation] as measured by the GDP Implicit Price Index [IPI] increased 3.6%. Including inflation, GDP in current prices increased 3.4% compared to 2015.
Charts extracted from the report
National Accounts Aggregates
“At the end of 2016, Gross National Disposable Income [GNDI] reached $6.2 billion. GNDI represents the income that can be used by households for consumption or savings as well as the income not distributed to owners of equity for non-financial and financial corporations. GNDI increased 2.9% compared to 2015 due mostly to a higher GDP.
“After adjusting GNDI for consumption expenditure, Gross National Savings was measured at $2.0 billion which represented a 6.4% increase year-over-year. Of the total savings, $760.1 million was spent on gross capital formation [investment in capital goods] which positioned the Bermuda economy as a net lender to the rest of the world in the amount of $1.3 billion.”
The full 16-page report is below [PDF here]
Anyone who believes the official GDP figures must believe in the tooth fairy as well.