Minister On GDP & Economic Performance
Minister for Economy and Labour Jason Hayward held a press conference to discuss Bermuda’s 4th quarter 2023 GDP and economic performance.
Minister Hayward said, “Good day to members of the media and the listening public.
“The Quarterly GDP estimates indicate that Bermuda’s economy continued to expand and demonstrate strong economic performance in 2023. In 2022, the Ministry of Finance forecasted that the economy would grow by 4.0% to 4.5% in 2023. Quarterly GDP figures reflect that our economy is on track to meet those estimates.
“The economy continued to grow positively in the fourth quarter of 2023. After adjusting for inflation, the GDP in constant prices increased by 4.7%, marking the five consecutive quarters of GDP growth in Bermuda’s economy.
“Real GDP in the first quarter of 2023 has been revised upward from a 4.5% increase to a 5.3% increase, and second-quarter GDP has been revised upward from a reported 3.9% increase to a 4.4% increase. Furthermore, third-quarter GDP has been revised downward from an 8.3% increase to a 6.4% increase in quarterly GDP.
Consumption
“Final consumption increased 0.3% during the fourth quarter of 2023. The increase was driven by increases in Government Expenditure. The results for Government Expenditure showed that consumption increased by 2.3% during the quarter, due primarily to higher expenditure on wages and salaries.
“Meanwhile, household expenditure remained relatively static, dipping 2-tenths of a percentage point to total of $801.8 million year-over-year.
Employment Income
“Employment income in the fourth quarter was 9.3% above 2022 levels. All major industries reported growth in employee remuneration, except the construction industry. The increase in employment income by industry reveals the following performance:
- Hotels and Restaurants increased 16.7%
- International Business increased 15.4%
- Business Services increased 14.0%
- Transport and Communication increased 8.9%
- Public Administration increased 5.4%
- Wholesale and Retail increased 3.4%
- Banking, Insurance and Real Estate increased 3.4%
- Construction abated 1.2%
Business Investment
“With respect to business investment, Gross Capital Formation declined 3.3% to $211.8 million. Investment related to construction fell 5.4%; while investment in machinery and equipment decreased by 1.3% due to lower imports of industrial machinery, computers and equipment.
Balance of Payments
“The 2023 4th Quarter Balance of Payments reported that Bermuda’s trade surplus with the rest of the world was recorded at $216 million, representing a $46 million increase year-over-year. Services transactions realized a surplus of $92 million, expanding by $19 million from the previous year. The deficit on the goods account widened by $14 million to $336 million. Additionally, Bermuda’s primary income account surplus expanded by $54 million year-over-year, climbing to $527 million in the fourth quarter.
“Furthermore, at the end of the fourth quarter of 2023, the stock of foreign assets held by Bermuda residents registered above its stock of foreign liabilities by an estimated $4.1 billion. The net International Investment Position decreased by $539 million compared with the third quarter of 2023.
Business Registration
“Total business registrations increased by 1.0% year-over-year, bringing the complete business register to 16,269. Two hundred and thirty-two [232] new businesses were registered in Bermuda during the fourth quarter of 2023.
“In conclusion, the fourth quarter of 2023 generally saw strong growth in the Bermudian economy. The Government will continue to facilitate Bermuda’s economic expansion by creating a business ecosystem that allows businesses to thrive. The Government’s Economic Development Strategy 2023-2027 outlines the economic priorities that will drive the initiatives required for a prosperous economy.
“For more information, please review the Quarter 4, 2023 Quarterly GDP by Expenditure and the Quarter 4 2023 Quarterly Balance of Payments and International Investment Position publications available at the Department of Statistics online at gov.bm.
“Thank you.”
The Quarterly GDP by Expenditure Q4 2023 follows below [PDF here]:
The BOP & IIP Q4 2023 follows below [PDF here]:
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