Minister: Q2 2024 GDP & Economic Performance
Minister of Economy and Labour Jason Hayward held a press conference to discuss Bermuda’s 2nd quarter 2024 GDP and economic performance.
Minister Hayward’s remarks:
Good day to members of the media and the listening public and thank you for joining.
Quarterly GDP and Economic Performance
Bermuda’s economy continues its rapid expansion demonstrating strong economic performance. During the second quarter of 2024, the economy grew by an estimated 8.7 per cent year-over-year after adjusting for inflation.
Economic expansion was a direct result of increased trade balance and business investment. Gross Domestic Product by Expenditure in current prices increased by 10.1 per cent during the second quarter.
Consumer Spending
Consumer spending in the second quarter remained static at $807.5 million. Household Consumption of Services increased 0.4 per cent year-over-year, reflecting higher expenditures on travel services. Spending on durable goods increased by 4.9 per cent, due mainly to increased expenditure on new and used cars and motorcycles.
Employment Income
Employment income in the Second quarter was 8.8 per cent above 2023 levels. Employment income in the following industries all increased in the second quarter of 2024:
- International Business [16.2%]
- Hotels & Restaurants [7.3%]
- Banking Insurance & Real Estate [8.7%]
- Business Services [5.4%]
- Wholesale & Retail [1.2%]
- Construction [6.0%]
- Transport and Communication [13.1%]
The Second-quarter growth in employee remuneration in these sectors is positive, and the income levels continue to improve.
Tourism
The island hosted 67,121 air visitors during the Second quarter of 2024, up from 62,417 in the Second quarter of 2023.
Government Expenditure
The Government’s consumption increased by 1.1 per cent during the quarter, with higher expenditures on insurance, wages, and professional services.
Business Investment
Furthermore, Gross Capital Formation grew 1.6 per cent to $220.9 million. Investment in machinery and equipment increased by 4.4 per cent due to higher furniture imports, agricultural machinery and industrial machinery. Investment related to construction fell 1.4 per cent.
The External Balance of Goods and Services
Bermuda’s Trade Balance rose by 34.2 per cent to $541.0 million because of growth in receipts for the Exports of Goods and Services, outpacing the growth of payments for the Imports of Goods and Services. Exports of Goods and Services increased by 19.2 per cent during the quarter, partly due to increased receipts related to business services.
Business Registrations
Bermuda’s business ecosystem remains robust. In terms of total business registrations, 180 new businesses were registered in Bermuda during the Second quarter of 2024. Thirty-four new local companies were registered, bringing the local business register to 3,958, up 2.1% over the total local business registered in Q2 of 2023.
Conclusion
The Government continues to facilitate the expansion and sustainability of Bermuda’s economy by creating a business environment that allows businesses to thrive. The Government will continue to execute the strategic initiatives outlined in Bermuda’s Economic Development Strategy to ensure that Bermuda experiences sustainable economic growth and development.
For more information, please review the Quarter 2, 2024 Quarterly GDP by Expenditure and 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 Q2 2024 follows below [PDF here]:
The BOP & IIP Q2 2024 follows below [PDF here]:
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“the economy grew by an estimated 8.7 per cent year-over-year after adjusting for inflation”
What rate of inflation did you use? Locally generated inflation rate of 2.5% to 3% or the real rate of inflation of about 11%?
Assuming the numbers are correct, this shows an economy out of control and will end badly. Maybe not next year but within 5. The reliance on IB skews all the data and when, not if, IB scales back and reduces its footprint here and international events over which Bermuda has no control will impact it, there is no other sector to pick up the pieces. If the economy is doing so well, where are the new bridges, roads with no potholes? Why is so much extra money being paid out to support Bermudians?
Agree, if we are doing so well, then why is the infrastructure a mess.
Absolutely true on all points but no-one’s paying attention to all of that stuff seeing things are so much more ‘equitable’ and ‘fairer’ now !
Sarcasm does not work very well in text.
Things are not fairer and are not more equitable. This is and will always be a myth. To elevate one person means to unfairly treat another.
The PLP are full of buzz words and sound bites and anyone who buys into their lies is starving their own pockets without realizing it.
In modern political speak in Bermuda “fairer” means taking from those who have money and giving to those who do not.
Trouble is, they are taking from those that have a bit more and redistributing randomly, so not everyone who has less gets more.
The people who have a bit more do not have that much more and may sacrifice things in order to try an pay for for example private school. those are the people being hit the hardest. whereas the wealthy just keep accruing their wealth, owning multiple homes and making life more expensive for everyone.
The way the PLP have gone about this is NOT making it fairer for all. their statement is wrong and is a lie and a cheap false political slogan.
Where are the GDP per capita comparisons with previous years, going back 10 years? Just comparing to last year means absolutely nothing. It just means they are improving on their own dismal performance. We want to see where we are compared to when the opposition were last in power. And where we are compared to prior to the pandemic.