Column: Jason Hayward On Bermuda’s Economy

January 8, 2020 | 37 Comments

Jason Hayward Bermuda April 24 2018[Opinion column written by MP Jason Hayward]

The recently released Gross Domestic Product [GDP] report highlighted that for the second consecutive year Bermuda has had positive economic performance. Additionally, the GDP for the 1st and 2nd Quarters of 2019 also trended in a positive direction.

GDP is the principal measure of economic performance. It captures the value of goods and services produced within Bermuda during a specified period. Simply put, if GDP increases it means that our economy is growing and when GDP declines our economy contracts.

It is important to note that Bermuda’s top 3 industrial sectors are International Business Activity, Real Estate Activities, and Financial and Insurance Activities.

International Business Activities is the top industrial section, representing 25.1% of our total economic activity, while Real Estate Activities and Financial and Insurance Activities represent 14.7% and 14.1% respectively.

Our economy has 19 industrial sections, the above three industrial sections collectively making up 53.9% of our total economy. Their contribution to GDP is larger than the remaining 16 industrial sections combined. The three top industrial sections all recorded economic growth according to the latest GDP report.

International business is the current lifeblood of Bermuda’s economy and will continue to be for the foreseeable future. The slogan used by the international business community “international business is everyone’s business” should remind us all that drives our economy. The direct, indirect and induced effect of International Business on economic growth and employment income is unmatched by any other industrial section.

Recently there has been much talk about the performance of the retail sector. It is misleading at best to for individuals to use the performance of retail establishments as a measure for the Country’s overall economic performance.

The Construction and Quarrying industrial sector had the greatest individual contribution to overall growth. However, it was the Country’s ability to export more services than we imported that was collectively the biggest contributor to Bermuda’s economic growth. In 2018 Bermuda’s net export of goods and services increased in current prices by roughly $110 million over the net position recorded in 2017.

The recently released Tourism Satellite Account [TSA] report highlighted that if tourism was an industrial sector it would be our economy’s fifth largest and it demonstrated positive economic performance. The growth anticipated in this area is welcomed as the direct, indirect and induced contribution of tourism equates to 4,832 jobs in our economy.

Despite the narrative of Bermuda being in economic decline that some aim to paint, the data supports that Bermuda’s economy is not in decline and there is no recession. It also serves no meaningful purpose for others to continue to preach the falsehoods of doom and gloom.

While the numbers speak for themselves, the numbers will provide small comfort for those who are still unemployed, underemployed or given up hope of ever finding a job in their own country. We know that if even one Bermudian has not felt the impact of the growth in our economy, our work is not completed.

We are fighting for a living wage because we believe that no Bermudian should work a full-time job and still struggle to cover basic necessities. We are fighting for affordable healthcare because Bermudians today pay too much, receive too little and our collective health is too poor for the status quo to remain unchallenged.

Through the implementation of legislation and policies, we will continue to keep our election promise to take steps to improve the lives of Bermudians and create a better and fairer Bermuda.

- Jason Hayward

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Comments (37)

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  1. sandgrownan says:

    There’s so much hypocrisy, blatant untruth and stupidity in this column, it’s almost hard to know where to start.

    How about this – walk around Hamilton and count the number of empty store fronts and vacant offices. Then look at empty supermarket shelves and the increased cost of living under the PLP.

    Then look at debt repayments, and see if you can figure out how we’re going to pay them.

    And finally, given their stellar track record in the economy, just think of how good healthcare will be when the PLP get their grubby little fingers on it.

    • swing voter no more!!! says:

      THE TRUTH IS THE oba IS THE UBP and the people are tired of the name change to escape it’s racist past. Funny how you believe JET GATE Craigy will save you, might as well replace him with a circus clown if you wanted the voters to LOLOLOLOL.

      • swing voter no more!!! says:

        “The most effective politician of 2019″
        David Burt
        12%
        Wayne Caines
        13%
        Craig Cannonier LOLLOLOL
        5%
        Zane DeSilva
        11%
        Curtis Dickinson
        11%
        Michael Dunkley
        16%
        Nick Kempe
        28%
        Leah Scott
        5%

        • Entre Manure says:

          Whats your point @Swing Voter No More? I assume that you are trying to show that CC was ranked at 5%? However, like any other PLP supporter when releasing facts that the same poll also shows that the two most effective politicians were Michael Dunkley and Nick Kempe. where was you leader- Burt exactly?

      • Joe Bloggs says:

        “THE TRUTH IS THE oba IS THE UBP and the people are tired of the name change …”

        No, that is most certainly not the truth, but feel free to keep peddling that lie.

      • sandgrownan says:

        What on earth are you drooling on about?

        But, if you want to engage about JetGate, you probably should exhibit some honesty and talk about the original JetGate. And it’s all a matter of public record, no liable or slander here.

        When Dr. Brown was Bermuda’s premier (2006 – 2010), he also took the cabinet position of tourism minister. During that period, Bermuda spent $41 million on tourism advertising.

        On Brown’s watch, the government signed Globalhue to handle the account from 2006-2011. Brown and Globalhue CEO Don Coleman are longtime friends. Coleman had given Brown a ride on his private jet. The contract was renewed without a competitive bid in 2009 and Globalhue overbilled Bermuda to the tune of $1.8m.

        During the Brown/Globalhue regime, tourism declined 35%.

      • wahoo says:

        Truth is that the plp are ruining this country and you are too ignorant to see it.

  2. bluenose says:

    And what happens when the major Construction Projects are completed?

    • sandgrownan says:

      I love how he lauds the recent uptick in Tourism, when the PLP fought tooth and nail against the de-politicization of tourism and the formation of the BTA.

      Who can forget the absolutely disgusting personal attacks on BTA personnel, including the CEO. Who can forget how they opposed the hosting of the AC, and conveniently now how they try to re-write history.

      • Credibility 101 says:

        From pepper spray victim to economist.
        Credibility is lacking with this MP.

  3. wahoo says:

    Gee whiz it sure sounds nice. Glad that you realize international business is so important I hope you understand that they seek a place that they can have confidence in. Attempts to stifle democracy and shut down parliament do not instill confidence.

  4. summary says:

    Ok, so people leaving the island, record numbers of stores closing and growing inflation are no cause for concern? Great news.

    • Question says:

      Yeah, apparently the amount that the population actually spends is not related to the health of the economy. According to the guy who wrote the article.

  5. Kim Smith says:

    Will the Government be fighting to address the cost and quality of food in Bermuda. The prices border on outrageous and I am very concerned that many people will not be able to afford healthy foods and revert to low quality options.

    • watching says:

      So you would be ok with government putting price controls on certain foods?

  6. Ringmaster says:

    Wow, talk about having no idea of how an economy functions. The ignorance and naivete is staggering, and he is an MP? Just proves knowledge is not needed.
    To use GDP in the way he has is false and misleading this whole opinion is a veritable piece of fiction.

    • sandgrownan says:

      To be fair, he isn’t exactly the sharpest knife in the drawer.

      Curtis must have his head in his hands, being surrounded by such a bunch of Muppets.

    • Humphrey says:

      No talks about the roads put holes everywhere we’ve chased everyone out no money to pay for anything.what are we waiting for?no lowering of debt. What next they don’t have a clue.

  7. Cabinet Salary says:

    Is this how you audition or prepare to get into Cabinet to increase your monthly salary?

  8. Yawn says:

    Yawn – so a Civil servant turned people’s campaign organiser turned Trade Union stalwart turned pepper spray victim will now miraculously reduce the $2.5 Billion debt and rebuild Bermuda’s economy? PLP you are really out of steam 3 years in.

  9. Joe Bloggs says:

    “GDP is the principal measure of economic performance. It captures the value of goods and services produced within Bermuda during a specified period.”

    Are you talking about Nominal GDP or Real GDP?

    GDP can be calculated in three ways. Using expenditures, production, or incomes. GDP can be adjusted for inflation and population to provide deeper insights. What is the basis of GDP to which you refer?

    “Despite the narrative of Bermuda being in economic decline that some aim to paint, the data supports that Bermuda’s economy is not in decline and there is no recession.”

    In July 2019, a survey of local chief executives showed business confidence in Bermuda had dropped 26 points in a year to a record low of 62.8. How do you explain that?

    Just last year the Bermuda Government announced that the economy, as measured by gross domestic product, grew by just 0.1 per cent in 2018 after taking inflation into account. That is 1/10 of 1%. That is hardly economic growth.

    As you say “the numbers speak for themselves”.

  10. Paul says:

    Please people, we need an election to oust this so called government ….they are for themselves not us….
    Bermuda, has never been in such a mess how long are we going to tolerate this ?

    • Joe Bloggs says:

      There is no viable opposition. Before you call for an election you might want to form a viable opposition party.

  11. Credibility 101 says:

    The Author should shift his focus to rebuilding his credibility after the controversy surrounding his leapfrog into the House of Assembly. Once he does that the Public will be more receptive of him and any policy changes he provides. Right now it looks like a grab for promotion into Cabinet

    • Joe Bloggs says:

      The author should also take some courses in economics. He has clearly displayed his lack of understanding of basic economic principles.

  12. Where is Jason? says:

    So where is Jason?

  13. trufth says:

    Oh my god, this guy has NO CLUE WHATSOEVER.

    SCARY times, people. Very scary times.

  14. The economy stupid says:

    Don’t forget folks, the PLP have nothing to lose.

  15. ella says:

    Let us not forget about the Government Pension Plan. I read somewhere today that they owe a senior citizen (lady) $8000+! WTH is up with that!!

    To PLP: They do deserve an explanation – don’t you think?

  16. Who elected this fool? says:

    “It is misleading at best to for individuals to use the performance of retail establishments as a measure for the Country’s overall economic performance.”…say what???? The cluelessness of some of our MP’s is nothing short of terrifying. Jason Hayward should just shouldn’t be allowed to comment on anything regarding the economy…..ever! “Completely useless” comes to mind

    • Ringmaster says:

      Notice how just 2 PLP backbenchers post ‘opinion” pieces? Famous and Hayward, trying to be something. Just as well the others keep quiet so as not to show their ignorance. I imagine after the election in 2017, the PlP looked at each other and said WTFDWDN?

      • Opportunists says:

        What will be more interesting is how long MP Famous and MP Hayward are allowed to only collect $4,000 monthly basic parliament pay packet, my guess is if they dont get pay rises soon they will turn against the Communist Party and Fidel

  17. Opportunists says:

    What will be more interesting is how long MP Famous and MP Hayward are allowed to only collect $4,000 monthly basic parliament pay packet, my guess is if they dont get pay rises soon they will turn against the Communist Party and Fidel

  18. SpinCycle says:

    This is like trying to pass off purple Koolaid as fine wine. It is grape. Wine is made of grapes. A+B=3

  19. bluenose says:

    There are three kinds of lies: “Lies, damned lies and statistics!”

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