Video: Minister Hayward Press Conference

[Updated] Minister of Economy and Labour Jason Hayward held a press conference this afternoon [April 30] to provide the 4th Quarter 2024 Economic Update. The press conference has just concluded and we will have additional information later on, and in the meantime the live video replay is below.

Update 3.20pm: Minister Hayward’s remarks:

Good day to members of the media and the listening public…

Q4 2024 Economic Performance

The quarterly GDP figures indicate that the economy has outperformed expectations, showing better-than-anticipated growth.

The economy continued to grow positively in the fourth quarter of 2024. After adjusting for inflation, the GDP in constant prices increased by 6.5%, capping off the year with strong economic expansion.

The quarterly GDP estimates indicate that the economy has expanded by at least 7.3% in nominal terms in 4th Quarter of 2024.

Real GDP in the second quarter of 2024 has been revised upward from a 9.5% increase to a 9.6% increase, and third-quarter GDP has been revised upward from a reported 1.1% decrease to a 0.7% decrease.

Consumer Spending

Consumer spending in the fourth quarter increased 1.1 per cent year-over-year to $821 million. Spending on durable goods rose by 7.7 per cent due largely to greater expenditure on equipment for reception, recording and reproduction, new and used cars and motorcycles. Spending on non-durable good increased 5.5% as a result of increased spending on accompanied personal goods, food and non-alcoholic beverages. Consumption of services abated 1.4 per cent year-over-year, reflected in lower services related to travel.

Employment Income

Employment income in the fourth quarter was 4.4% above 2023 levels. All major industries reported growth in employee remuneration. The increase in employment income by industry reveals the following performance:

• Construction increased 13.8%
• Hotels and Restaurants increased 7.3%
• Wholesale and Retail increased 5.2%
• Transport and Communication increased 4.7%
• International Business increased 4.3%
• Banking, Insurance and Real Estate increased 3.7%
• Business Services increased 3.2%
• Public Administration increased 2.0%

The increase in employment income across all major industries in Bermuda not only boosts the financial well-being of individuals but also stimulates consumer spending, drives economic growth, and enhances the overall prosperity of Bermuda.

Government Expenditure

Consumption by the Government increased 3.6 per cent during the quarter, with higher expenditure on wages and salaries, insurance and professional services.

Investment

With respect to investment, Gross Capital Formation increased 1.7% to $213.6 million. Investment related to construction expanded 5.3%; while investment in machinery and equipment decreased by 1.6% due to lower imports of agricultural and industrial machinery.

The External Balance of Goods and Services

The 2024 Fourth Quarter Balance of Payments reported that Bermuda’s trade surplus with the rest of the world was recorded at $361 million, representing a $135 million increase year-over-year. Services transactions realized a surplus of $121 million, expanding by $26 million from the previous year. The deficit on the goods account narrowed by $40 million to $298 million. Additionally, Bermuda’s primary income account surplus expanded by $85 million year-over-year, climbing to $621 million in the fourth quarter.

Business Registrations

Bermuda’s business ecosystem remains robust, and total local business registration increased year-over-year, bringing the complete business register to 4,044. There were 44 new local businesses registered in Bermuda during the fourth quarter of 2024.

In conclusion, the economic results are both positive and promising, highlighting the Bermuda’s economic maturity and resilience. Notwithstanding the successes, 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, 2024 Quarterly GDP by Expenditure and the Quarter 4 2024 Quarterly Balance of Payments and International Investment Position publications available at the Department of Statistics online at gov.bm.

The Quarterly GDP by Expenditure Q4 2024 follows below [PDF here]:

The BOP & IIP Q4 2024 follows below [PDF here]:

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