Bermuda’s gross domestic product (GDP) went up 1.5 per cent to more than $1.39 billion in the second quarter of the year after adjustment for inflation.

An increase in the balance on trade in goods and services — which offset a decline in investment in fixed assets — was cited as the main driver for the increase.

Before inflation, the increase stood at 2.4 per cent, which followed a revised increase of 2.7 per cent for the first quarter of the year. It was the third consecutive quarter of real GDP growth.

Residents spent more on durable goods like motor vehicles and on non-durable goods like food purchases in stores, up 1.5 per cent and 0.6 per cent after adjustment for inflation.

Government spending also went up by three per cent — attributed to increased outlays on administration — an increase of 2.3 per cent allowing for inflation.

Investment in fixed assets fell by more than 5 per cent due to lower construction activity and less spending on plant and machinery.

The net surplus on trade in goods and services went up 12.1 per cent, while exports of services fell 2.1 per cent, reflecting lower receipts from insurance services.

Imports of goods fell by 9.5 per cent due to lower fuel imports, while imports of services fell by six per cent due to lower payments for transport by air and sea and management consultancy.

In real terms, the net surplus on trade in goods and services rose 13.8 per cent.