2019 Gross Domestic Product Report Released
Today the Minister for the Cabinet Office Wayne Furbert released the 2019 Gross Domestic Product [GDP] publication from the Department of Statistics.
The Minister explained, “The Bermuda economy grew by 3.6 percent in 2019 led by increased activity in construction, real estate, human health and social work. When accounting for inflation Bermuda’s GDP increased by 0.5 percent in real terms, in terms of contribution to the level of GDP, International Business Activity remained the top contributor with 25.2 per cent of the overall GDP. The GDP per capita at current prices grew by 3.5 per cent to reach $116,890 at the end of 2019.”
Charts extracted from the report
Highlighted below are some key results from the 2019 GDP publication:
- GDP in current prices was measured at $7.5 billion, a 3.6 percent increase over 2018 GDP in constant prices (real terms) for 2019 was measured at $6.5 billion, a 0.5 per cent increase over 2018.
- The largest increases in absolute real terms were recorded for the Construction and Quarrying industry, Real Estate activities and the Human Health and Social Work industry.
- Value added for Construction and Quarrying activity rose 20.0 per cent in real terms or by $53.0 million associated mainly with construction of the Bermuda Electric Light Company Limited’s North Power Station and battery energy storage system as well as continued development work on the airport and hotel in St George’s parish.
- Value added for Real Estate Activities rose 2.0 per cent or $18.7 million due mostly to a rise in the imputed rent for owner-occupied dwellings as well as an increase in real estate activities with leased property.
- Human Health and Social Work activities increased 4.9 per cent or $15.5 million in 2019. Private health activities grew 6.5 per cent while public health activities increased 4.6 per cent. Social work activities recorded a 2.9 per cent increase due mostly to residential care activities for the elderly and disabled.
The full GDP 2019 Annual Publication follows below [PDF here]:
“International Business Activity remained the top contributor with 25.2 per cent of the overall GDP.”
That is probably worth bearing in mind the next time someone wants to lash out at the International Business community. More than 1/4 of our GDP comes from their work.
I’d say the 25% is way too low. Directly maybe but add in the economic impact locally and it must be above 50%. After all who creates the wealth to pay for the Civil Service?
Interesting that a large part of the GDP is supported by the developments at BELCO (ended) the airport (about to end) and the St Regis. What is going to replace them in 2020 and going forward? The secretly funded arbitration centre?
Maintenance on Government buildings? Even without the Covid effect GDP will fall substantially.