GDP Increase Recorded In 2015 Second Quarter

November 9, 2015

According to the Quarterly Gross Domestic Product [GDP] report released by the Department of Statistics, in the second quarter of this year, quarterly GDP at current prices was estimated at $1,391.5 million, which represents a 2.4% rise year-over-year.

The report said, “During the second quarter 2015, quarterly GDP at current prices was estimated at $1,391.5 million. This represented a 2.4% rise year-over-year, following a revised growth of 2.7% for the first quarter 2015.

“The main driver was an increase in the balance on trade in goods and services which offset a decline in gross capital formation. Spending on household and government consumption also rose during the period.”

Charts extracted from the report

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“Household final consumption increased 1.5% due to greater expenditure on durable goods such as motor vehicles and non-durable goods such as food purchased in stores. After adjusting for inflation, household consumption rose 0.6%.

“Government consumption advanced 3.0% mostly associated with increased outlays on administration. After adjusting for inflation, government consumption increased 2.3%.

“Gross capital formation [i.e. investment in fixed assets] decreased 5.1% due to lower construction activity and fewer acquisitions of machinery and equipment. In real terms, gross capital formation contracted 5.5%.

“The net surplus on trade in goods and services advanced 12.1%. Exports of services contracted 2.1% reflecting lower receipts from insurance services.

“Imports of goods decreased 9.5% due to lower fuel imports while imports of services declined 6.0% due to lower payments for air transport, sea transport and management consultancy. In real terms, the net surplus on trade in goods and services rose 13.8%.

The full Quarterly GDP Publication Q2 2015 report follow below [PDF here]:

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Comments (19)

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  1. Terry says:

    Great.

  2. Bermyman says:

    PLP DON’T WANT TO HEAR IT!

  3. I can’t hear “you” :-) I also want to thank once again the change in our Government…

  4. Reality Check says:

    The trumpet blast says that GDP has risen.

    But look ‘under the hood’.

    The trumpet blast says ‘Household expenditure increased 1.5%’. Looking under the hood shows that after adjusting for inflation, household consumption rose 0.6%. That’s hardly a significant move.

    Truth? Price increases in the items purchased by households are the driver for that trumpeted rise.

    “Government consumption advanced 3.0% … with increased outlays on administration. After adjusting for inflation, government consumption increased 2.3%”.

    With a deficit running at $220.0 million for this year and $299.9 million for last year, looking under the hood tells us that ‘borrowed money’ is fueling this ‘government consumption’. According to Larry Burchall, out of every dollar that Government spends, Government is currently borrowing $0.30. Which is why the deficits sit so high.

    A GDP rise fuelled by small price increases and borrowed money is not good. Not good at all.

    Look under the hood people. Look under the hood.

    • Lois Frederick says:

      Can’t deny the positive trend though, right? Don’t try and pretend this is no improvement over the negative gdp Bermuda has endured for years. It will never be a smooth growth, as anywhere it will be choppy initially as different sectors react. I like the overall trend and it bodes well for Bermuda as a whole.

    • hmmm says:

      You want slow and steady growth, not PLP BOOM and BUST BUST BUST BUST.

    • jt says:

      You’re describing the noise the engine is making, not what’s causing it. The engine has been checked but nobody’s brave enough to remove the excess parts.

  5. planeasday says:

    There are many ways to manipulate gdp numbers – look to GB and the USA as laughable examples. I would not buy stock in these meaningless numbers…even though they are somewhat positive…

  6. Coffee says:

    Stop your noise … Still many unemployed and yet to be unemployed in Bermuda , thirty five months under the OBA and a average of at least thirty five more people put on the unemployment list each month. While other countries GDP has risen much , much faster and so much more robust , they’ve reduced unemployment , unfortunately , under this kippers and cream government the unemployment rates continues to rise unabated … Fact !

    So now isn’t the time to blow any rusty horns , get a dog whistle instead !

    • jt says:

      And those countries were achieving that while we remained in free fall and before the OBA took over. There were no signs of recovery here prior to the last election. Zero.

    • Build a Better Bermuda says:

      Total of 166 jobs posted on Bermuda Job Board

    • Lois Frederick says:

      C’mon, you know that job creation trails a rise in GDP, don’t you? Can take as much as 2 years for an economy coming out of recession to grow new jobs. OBA is fixing the problem. They certainly didn’t cause the problem. With big construction projects lined up for 2016, Bermuda can expect unemployment rates to drop. With the injection of significant new money on the island, we can expect our GDP to continue to grow and for Bermuda’s economic fortunes to improve. That’s what the average Bermudian wants. Isn’t that what you want too?

      • Coffee says:

        It took over four years for ONE DIEHARD OBA SUPPORTER TO ACKNOWLEDGE THAT A RECESSION INDEED WAS THE PRIMARY REASON FOR THE ECONOMIC DOWNTURN IN BERMUDA …. WELL DONE !

        • Lois Frederick says:

          The plp compounded the situation. Our debt and deficit are the direct result of bad decisions by the plp. Bermuda is only reaping what was sowed. At least now Bermuda stands a chance of recovery. The alternative sinks the ship.

        • jt says:

          Of course there was/is a recession. Stop being a dummy. The depth and length of a recession have many factors. In our case both the depth and length were compounded by the PLP.

        • Zevon says:

          A recession that lasted 8 years here vs one year everywhere else.

  7. rhonda says:

    I said this under the PLP and I remain steadfast under the UBP renamed OBA, that these reports needs to be captured and produces independent of government…

    • Cup Of Tea Anyone? says:

      Rhonda, you are a real waste of Oxygen.

      i mean, seriously.

      smh

      toodles

    • SMH says:

      Every village has one…ours is named rhona.