Bermuda’s GDP Drops 5.8%
Bermuda’s Gross Domestic Product dropped 5.8% in 2009 — or 8.1 percent when adjusted for inflation — as the global recession continues to impact on the island’s economy. GDP, which measures the total value of goods and services produced in Bermuda, totalled $5.7 billion in 2009 according to new figures released by the Statistics Department today [Dec 3].
“Financial intermediation, international business, hotels and restaurants, and the construction industry all suffered large declines in domestic output,” said the department. “The main factors contributing to the weaker growth performances were job losses, plummeting profits and reduced consumer spending. The public administration sector recorded 3.3 per cent growth in output during 2009. Combined output for the education, health and social work sectors remained relatively flat.”
Among the hardest hit sections of the economy last year were businesses in tourism-related fields, said the department.
“The hotel and restaurant industry’s value added fell $64.6 million in 2009 from the year prior,” said the Statistics Department. “The decline was due primarily to fewer stay over visitors to the Island and a decline in their related expenditures at accommodation establishments. In an effort to cut operational costs due to lower visitor levels, some hotels laid off staff, closed several guest rooms and offered other hotel services on a rotational basis only. However, occupancy rates did not improve and gross revenue slumped to a 14 year low despite many sales initiatives by hoteliers to attract customers.
“The general economic downturn impacted negatively on the operational activity of restaurants and bars as sales fell nine per cent during the year. Despite mechanisms to improve their services to customers, the sector still experienced a $21.5 million loss in output.”
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WONDERFUL!!!!!!!!!!!!!
Hang on Tight everyone…cause you aint’ seen nothing yet!!!!
Platinum period.
Have no fear Paula is here !
Watch out for the rush to get to the front of the Kool Aid line. If only the 52% who voted for this lot to be the Government could be held liabel for the horendous mess Bermuda is in because Paula & Co, AKA the same ol same ol, don’t have a clue & don’t want to listen to those who do.
What is it going to be for this financial year?
2010 will be much worse. This is why Paula will call a snap election for the spring of next year. If she waits longer than that she’ll have to disclose some nasty truths about Bermuda’s financial condition. And she was the finance minister…or I stand corrected…a Ewart Brown enabler…all so she could become Bermuda’s next Premier. People now want change because they want a govt that is transparent and accountable to the rule of law. We are tired of the PLP monarchy which is driving us to financial ruin.
Want an indication of how bad things are now? Take a ride around & see how many houses & apartments sit in darkness every night. They are unoccupied. No rent coming in for the owner to pay the mortgage. How long before the banks have no choice but to call mortgages? This is not the UBPs fault or the whte mans fault. The mess Bermuda is in is the fault of PLP incompetance. It is the fault of the Brown regime phenominal waste. Most of all it is the fault of PLP supporters whose apathy had them sitting by saying nothing while they drank the pablum flowing out of Alaska Hall.
Rents are still sky high!! Nobody that is unemployed can afford $3000 per month to pay for rent.I have seen no reductions in rent…SOME (NOT ALL) landlords charge their FULL mortgage payment as rent, so THEY are the ones that are going to suffer..because they are used to someone else (renter) paying their mortgage for them…
I didn’t want any of those gross domestic products anyway.
Does it even matter? GDP is not a reflection of the average Bermudian income, take away expat wages and then we have a better indicication of where we stand.
GDP reflects the size of the economic pie within Bermuda’s bouders. If you don’t think GDP matters then may God save our future generations.
Whats the point about stating a high GDP which is reflected in costs of goods/services on the island when that GDP is not reflective of the MAJORITY of the local population?
For example.. the current GDP is $86,000 and prices reflect that GDP, but yet the GDP of Bermudians is $70,000. (speculative figures) What is wrong with this picture?
Please Scott, for the good of us all, take a basic economics course.
Perhaps then you’ll be able to understand these figures, and, more important, their significance.
What’s wrong is the trend. If your $86,000 were to move to $60,000 then I doubt the Bermuda govt will have the tax base to invest in new infrastructure; worthwhile social programs, and look after those properties which it is obliged to look after. Wait a tick…hasn’t the Bermuda govt already run out of money to properly maintain the public schools? Our schools are literally fall to pieces. I think S. Brown you need to adopt a school (just hope you have something left over to look after the household). And all of this is JUST THE BEGINNING.
S.Brown……..just take away the expats………………….then you’ll know where you stand.
Night farming anyone on the backs of your fellow onions……………………….
You misunderstood me… I am not saying take away the expats, it’s obvious we need them. Subtract their income from GDP and we will see a true measure how BERMUDIANS have been affected.
Note: I am NOT xenophobic/anti-foreigner
I think you’re misunderstanding GDP.
Yes, median income of Bermudians adjusted for PPP is probably the best way to measure local wealth – and by that standard it wouldn’t be surprising to see an 8% drop in real wealth for Bermudians this year with the young and those with their assets in Bermuda being most heavily affected.
2010 promises to be worse.
If 2009 is down 8.1%, you wait till the 2010 figures come out !
Why the h#ll do you think Ewart took off………………The sh#t will hit the fan sooner than you think. Problem is, the children won’t and don’t know how to clean it or even ‘re-wire’……………………sad.
Greed.
Jingus…you lot are on a role.
Get rid of the expats and this will open many doors to employment. Look at all the empty residents that will have to be cleaned, maintenance, grounds work. Everyone unemployed will become.
Look at the bright side. No more home invasions, burgluries, stolen vehicles, third lane stuff, spilt beer and chips in premises…no more helmets on bar stools..no more ppl in the public classrooms…more space on buses…no more having to say…’would you like a glass of water whilst you look at the menu…no more…………………………………no more………………………
I need a rum………………
Where does anyone say get rid of expats??? No one says get rid of expats, what are you rambling on about???
True…you have never suggested getting rid of expats. What worries people is that you take a cavalier attitude to the economic effect/impact of the expats. The “velocity of money” created by the expact existence is considerable. Theoretically some expacts can leave while perhaps Bermudians are not worse off…but if the trend continues, and I think were are past the point, a further decline of the expat population will hit the pocket books of the Bermuda very very hard. And it has started. Bermudians have lost hundreds of expat tenants…and this is just the beginning. Technology has effected Bermuda big, and if the Bermuda govt does not know how to use todays technology to reverse the trend, create new industries and new jobs, then they should step aside and give the reigns of power to someone else who can.