2021 rebound in Q3 GDP
After adjusting for inflation, the GDP in constant prices increased 3.6 per cent in the third quarter of 2021, reflecting encouraging signs of a rebound in economic activity, compared with 2020, a government statement has said.
The statistics were shared by the Cabinet Office, as outlined in the 2021 3rd Quarter Gross Domestic Product (GDP) by Expenditure publication from the Department of Statistics.
There were several increases in a variety of sectors during the third quarter, which drove economic growth:
• Household final consumption increased 6.9 per cent year over year to $804.3 million.
• Consumption of services, which accounted for 73 per cent of total consumption, increased 9.1 per cent year over year.
This growth reflected higher expenditure for air transport, catering services and accommodation services. This signalled a return to normal spending on these services which were now offered at a fuller capacity compared with 2020.
• Exports of goods and services increased 4.2 per cent due mostly to increased visitor expenditure in Bermuda.
• Imports of goods and services increased 16.3 per cent as payments rose for sea freight transport in line with the increase in imports of goods such as fuel and finished equipment.
• Imports of air passenger transport services also grew as residents took more international trips compared with the previous year.
• Spending rose 2.5 per cent with increased purchases of electricity, as well as goods such as clothing and electronic goods purchased while overseas on travel and declared on return to Bermuda.
• Expenditure related to professional services grew $4.2 million during the period. Gross capital formation (ie, investment in fixed assets) grew 16.0 per cent to $236.1 million.
• Gross capital formation related to construction increased 1.5 per cent. This growth reflected the addition of 43 units to the stock of residential dwellings.
• Investment in machinery and equipment increased 32.3 per cent due to the importation of industrial machinery parts, transport equipment and furniture.
Meanwhile, there were some decreases in Q3 2021.
• Government final consumption saw a 0.6 per cent decline during the quarter, due mostly to lower payments for materials, supplies and transport services.
• The external balance of goods and services decreased 11.2 per cent to $250.3 million.
• Spending fell 2.0 per cent due largely to reduced expenditure on motorcycles, major household appliances, furniture and furnishings.
Wayne Furbert, the Minister for the Cabinet Office, said: “As the public will appreciate, our economy continued to face challenges due to the pandemic in 2021.
“However, our third-quarter GDP numbers showed some encouraging signs of growth and activity in several sectors of our economy. This follows the 2021 second-quarter GDP increase of 13 per cent.
“We know that there are still some challenges that we will need to overcome. But this Government remains confident that we have put in place a number of initiatives that will spur our economic recovery.”
To review the full 2021 Quarter 3 GDP Report visit https://www.gov.bm/quarterly-gross-domestic-product