GDP Increased 3.7% In First Quarter Of 2019
Minister for the Cabinet Office Wayne Furbert released the first quarter Quarterly Gross Domestic Product [GDP] publication from the Department of Statistics.
The Minister explained, “After adjusting for inflation, the GDP in constant prices for the first quarter increased 3.7%
“The growth in the first quarter was driven mostly by an increase in capital formation related to new residential construction, civil works such as road and bridge refurbishments, as well as continued work on the power station construction, airport project and hotel development.
“Investment in machinery and equipment also increased during the period. The public is advised to read the concepts and definitions on the last page of the publication prior to reviewing the data.”
Chart extracted from the report:
Highlighted below are the year-over-year changes in the quarterly GDP components:
- Household final consumption increased 0.5%.
- Government final consumption increased 1.2%.
- Gross capital formation increased 17.5%.
- The external balance on trade in goods and services increased 3.8%
The full Quarterly Gross Domestic Product publication follows below [PDF here]:
“The growth in the first quarter was driven mostly by an increase in capital formation related to new residential construction, civil works such as road and bridge refurbishments [Government spending], as well as continued work on the power station construction, airport project [Government spending] and hotel development.”
Dear Minister, thank you for the good news, but 3 of the 5 drivers of the economy you cite are Government spending (road refurbishments, bridge refurbishments and the airport project). Please will you clarify whether that Government spending is all reflected in the current 2019/2020 budget.
Thank you OBA for providing the airport and new hotel development.
Further benefits from the OBA – airport and hotel construction. Plus the Belco improvements to raise GDP. What is concerning though is Government consumption increased by 1.5% That is really bad news and is a red flag to anyone who understands these stats, though the way GDP is calculated is meaningless and projects a false picture. Gross National Product is the true basis and is about 50% of GDP. It means tax is about double the normal percentage. No wonder Bermudians are suffering from the cost of Government.
Have to keep that one in mind. We are not suffering from the cost of living. We are suffering from the cost of Government.
Smoke and mirrors perpetrated by the inept and incompetent. Even Flip Flop knows this isn’t good news.
Meanwhile in other news. Retail sales down for 14th consecutive month. Retailers and those working I’m retail and supporting businesses must be feeling great!
Just wait until the minimum/living wage laws kick in!
How is that promised balanced budget coming along? Hmmmmm?
l agree this number is a load of crap…..Enron…..this Government is Enron….if it was, it would be the same ending as Enron….What the hell is flip flop Furbert know about numbers….shouldnt he be at a baseball game singing
I agree this sets the tone for worse times ahead taxation island
Coffee shop math, oh never mind that’s closed.
Road and bridge refurbishments??? I must have not had my eyes on d road. Certainly not in Southampton, our roads suck! Oh of course they always do bits on South Shore for our guests…
This is all shortlived. As soon as New Airport, St. Regis & BELCO powerplant completed GDP will drop!!