Bermuda ended 2017 with a gross domestic product of $1.14 billion for the final three months of the year, after being adjusted for inflation. This was the estimated figure based on constant prices and represents a 1.4 per cent increase, year-on-year.

GDP is a broad measurement of overall economic activity, and is the monetary value of all finished goods and services produced with a jurisdiction’s borders.

The main contributor to the GDP increase was a $7.7 million rise in final consumption expenditure, according to a bulletin issued by the Bermuda Government’s Department of Statistics.

When measured in current prices — that is with inflation — Bermuda’s GDP for the fourth quarter was up 2.5 per cent compared to the same period in 2016.

After adjusting for inflation, household consumption was $651.7 million, up 1.4 per cent.

Gross capital formation, that is the investment in fixed assets, increased $1.6 million, or 0.9 per cent. This reflected greater investment in machinery and equipment such as vehicles and industrial machinery. However, capital formation related to construction was down 1 per cent.

The net surplus on trade in goods and services increased $6.5 million or 5.2 per cent, due to the combined effect of a rise in the exports of goods and services and a fall in the imports of goods and services. Receipts from the exports of goods and services rose $5.2 million due mostly to increased tourist expenditure.

Imports of goods and services, which have a downward effect on GDP growth, fell by $1.3 million reflecting lower payments for imported goods that offset a rise in the imports of services.