Video: Minister Hayward Press Conference
[Updated] Minister of Economy and Labour Jason Hayward is holding a press conference today [Sept 19] to update on Bermuda’s 1st Quarter 2024 GDP and Economic Performance.
Update: The live broadcast has concluded and the replay is below
Update 1.30pm: Minister Hayward’s remarks:
Good day to members of the media and the listening public.
Quarterly GDP and Economic Performance
Bermuda’s economy has demonstrated notable growth and resilience. During the first quarter of 2024, Bermuda’s economy grew by an estimated 7.1 per cent, adjusted for inflation, signifying strong expansion compared to the same period in the previous year. This economic growth resulted from increased household expenditure and a rise in the export of goods and services.
In current prices, GDP increased by 8.7 per cent during the first quarter, highlighting the additional impact of rising implicit prices.
Evidenced by both real and nominal GDP figures, such growth highlights the economy’s resilience and the effectiveness of supportive government policies and prevailing market conditions.
Consumer Spending
Consumer spending in the first quarter increased 1.2 per cent year-over-year to $793.4 million. This increase reflects modest yet positive growth in the total amount of money consumers spent on goods and services during the quarter.
Household Consumption of services increased 1.1 per cent year-over-year, reflected in higher expenditure for catering, cleaning and medical services. Meanwhile, spending on durable goods grew by 4.3 per cent, with notable increases in purchases of jewellery, clocks and watches, furniture and furnishings, and photographic equipment.
This increase in consumer spending in Bermuda’s first quarter demonstrates a positive economic environment, with growth in both service consumption and investment in durable goods.
Employment Income
In the first quarter of 2024, employment income rose by 11 per cent compared to 2023 levels. Notable increases in employment income were observed across various industries, including:
- International Business [17.1%]
- Hotels & Restaurants [6.7%]
- Banking Insurance & Real Estate [8.2%]
- Business Services [2.2%]
- Wholesale & Retail [1.3%]
- Public Administration & Defense [7.4%]
- Transport and Communication [14.9%]
This growth in employee remuneration across these sectors reflects positive economic performance.
Tourism
Tourism, which is vital to Bermuda’s economy also showed growth. In the first quarter of 2024, Bermuda welcomed 25,761 air visitors, an increase from 24,661 in 2023. Visitor’s estimated expenditure also rose, reaching $52.6 million, up from $48.7 million the previous year.
Government Expenditure
Government consumption increased by 6.9 per cent in the first quarter, a significant improvement over the 4.0 per cent decline experienced in the same period last year. This rise is mainly attributed to increased expenditure on salaries.
Business Investment
Gross Capital Formation remained relatively steady, with a slight decline of 1.0 per cent to $201.6 million. Although investment in construction fell by 6.8%, investment in machinery and equipment saw a positive increase of 5.1%, driven by higher imports of trailers, semi-trailers, machinery parts, and industrial machinery.
The External Balance of Goods and Services
Bermuda’s Trade Balance improved by 16.4 per cent to $800.4 million, as the increase in receipts from the export of goods and services exceeded the growth in payments for imports. Exports of goods and services grew by 10.8 per cent during the quarter, with a notable contribution from higher receipts related to business services. This improvement underscores Bermuda’s increasing competitiveness in international markets.
Business Registrations
Business confidence continues to rise, as demonstrated by a year-over-year increase in new business registrations. The business register grew to 16,186 total businesses, with 152 new businesses registered in Bermuda during the first quarter of 2024.
Conclusion
The Government is committed to fostering the expansion and sustainability of Bermuda’s economy by cultivating a business environment that allows businesses to thrive. As we move into the remainder of 2024, the Government will continue to execute the strategic initiatives outlined in Bermuda’s Economic Development Strategy to ensure sustainable economic growth and development. We remain focused on ensuring this momentum continues, supporting businesses, and creating jobs for the people of Bermuda.
For more information, please review the Quarter 1, 2024 Quarterly GDP by Expenditure publication available at the Department of Statistics online at gov.bm.
Thank you.
The Quarterly GDP by Expenditure Q1 2024 follows below [PDF here]:
The BOP & IIP Q1 2024 follows below [PDF here]:
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“Minister of Economy and Labour Jason Hayward is holding a press conference today to update on Bermuda’s 1st Quarter 2024 GDP and Economic Performance.”
Oh, good grief!
Probably got delayed by the cyberattack, added to the disdain of the Bermuda population displayed by the PLP. Who trusts data from this lot anyway?
Typical disdain for the civil service. The statistics are definitely NOT compiled by the Minister, but by the Department of Statistics who are non-political.
“The statistics are definitely NOT compiled by the Minister, but by the Department of Statistics who are non-political.”
No issue there. But those statistics are deployed in a way that is consistent with the policy of the government of the day.
Hence the famous quote attributed to Mark Twain, that there are “lies, damned lies, and statistics”.
Awesome results. A strong economy. Not perfect but strong.
Now we just have to make sure the benefits are felt by the masses.
HAHAHHAHAH I want whatever you’re smoking on….what is awesome about these results in all seriousness?!
unfortunately what he is saying isn’t true, he claims consumer spending has increased. If you adjust for inflation it has actually reduced. I can’t trust was Jason is saying here after that.
Just look at Front Street, how many empty shops, buildings, look at the roads (not just potholes, some have subsiding that will lead to a major accident and probably death in the coming years), look at the fences and walls on the sides of the roads, drive through the trees on south shore by botanical gardens, those walls have been completely neglected.
Take international business out of the picture and Bermuda would be dead. Look at the hotels, Elbow, Southampton Princess, even one at salt kettle was messed around from the ferry being pulled for a year.
Look at the state of the Causeway, the swing bridge.
what has happened to TN Tatem.
the tone at the Top from the PLP has created a legacy of “I don’t care”.
Gang Crimes have increased as have shootings.
Many fellow Bermudians have been forced to Leave Bermuda as they can no longer afford to live in their home.
Look at the price of rents ! STUPID, absolutely stupid, why? This is because people decided to do AIR BNB instead of renting. I WANT A LAW WHERE THE MAXIMUM number of HOMES a person can legally own is one (yes a side apt or below apt on same property would be allowed). Make Bermuda affordable again and start limiting the homes that can be held by a person or that they are the beneficiary of to ONE. The PLP should have done this when they got in power in 1998, but no those ministers care about accumulating their wealth, not the greater good of Bermudians.
“If you adjust for inflation …”
What rate of inflation shall we use? The one the Bermuda Government reports (roughly 2% in Q1), which is less than that of our major trading partners? Or shall we assume that the reported inflation rate in Bermuda represents local inflation only and add it to the 4.5% reported by the U.S. Government?
“Bermuda’s economy grew by an estimated 7.1 per cent, adjusted for inflation”
Ok. But what do you claim was the rate of inflation in Bermuda 9 months ago?
“Government consumption increased by 6.9 per cent in the first quarter, a significant improvement over the 4.0 per cent decline experienced in the same period last year. This rise is mainly attributed to increased expenditure on salaries.”
Our government is claiming that increased expenditure by a government that is billions of dollars in debt with no plan for pay that debt is “a significant improvement over the 4.0 per cent decline” in the previous year.
“Lies, damned lies, and statistics” – Benjamin Disraeli, made famous by Mark Twain
Slightly of topic but does anyone see how the PLP are selling off Bermuda? Years ago Bermudians were protected in what real estate could be purchased by non Bermudians. The restrictions were sensible. In the mid 2000′s Burch started the licence scandal for Bermudians married to non Bermudians. Now, non Bermudians can buy undeveloped land and work permit holders can buy condos (the new development beside the Cathedral). Now, looking at Hayward trumpeting the increase in IB influence, it is clear that the PLP have no interest in protecting Bermudians wanting to own a piece of their birthplace.
Where was the outrage when Cambridge Beaches Resort was sold to an American corporation?
Where was the outrage when St. Catherine’s beach was effectively given to St. Regis by moving the hotel from the hill to right in front of the beach?
At this rate we will be the fifty-first state of the United States soon. Then all of Bermuda will be owned by Americans or the super rich.
Isn’t that what you want? Bermudians love to emulate americans, it’s the British and Canadians ‘we’ hate.
No, it is not what I want. Unlike some, I am proud of our uniquely Bermudian heritage and I would like to preserve it.