Economy bounces back in Q2
The gross domestic product has bounced back with substantial economic growth, and the Cabinet Office has reported that the GDP in constant prices increased 13.6 per cent in the second quarter of 2021.
There were increases in several sectors as the growth reflected a rebound in economic activity compared with 2020.
A government statement said: “Some key highlights of the period include:
• Household final consumption increased 12.3 per cent year-over-year to $737.3 million.
• Non-durable and semi-durable goods spending rose 15.6 per cent with increased purchases of fuel, clothing purchased locally and goods purchased while overseas on travel and declared on return to Bermuda.
• Spending on durable goods grew by 51.0 per cent due largely to increased expenditure on motor vehicles.
• Consumption of services increased by 9.6 per cent year-over-year. This is due to higher expenditure for passenger transport by road, air transport, catering services and personal care services.
Meanwhile government final consumption saw a 5.6 per cent decline during the quarter due mostly to lower payments for wages, salaries and employee overheads.
In contrast, expenditure related to professional services grew by $5.1 million or 80.7 per cent.
Gross capital formation (ie, investment in fixed assets) grew 34.6 per cent to $203.4 million.
And gross capital formation related to construction registered a 25.6 per cent increase. This reflected the completion of the St Regis Bermuda Resort and the addition of 26 units to the stock of residential dwellings.
Investment in machinery and equipment increased 46.0 per cent attributed to the importation of computers, transport equipment and furniture.
And the external balance of goods and services increased 18.1 per cent to $397 million.
Growth was reflected mostly in the exports of goods and services, which rebounded 19.2 per cent due to increased visitor expenditure and revenue earned from legal, accounting and management services.
Exports of goods also increased during the second quarter as more fuel was sold to visiting airlines.
Imports of goods and services increased 20.3 per cent as payments rose for sea freight transport in line with the increase in imports of goods across all commodity groups.
Imports of air passenger transport services and travel services also grew as residents took more international trips compared to the previous year.“
Wayned Furbert, the Minister for the Cabinet Office, said: “As the public will appreciate, last year our economy was significantly challenged due to the pandemic. However, our second-quarter GDP numbers are showing encouraging signs of growth and activity in many sectors of our economy.
“We know that there are still some challenges that we will need to overcome. But this Government remains confident that the Economic Recovery Plan, which is well under way, will provide a blueprint for a successful recovery.”