Log In

Reset Password

First-quarter real GDP falls 0.4%

A broad measure of Bermuda's economic activity contracted in the first quarter of this year, according to a report released today.

Gross domestic product — the value of goods and services generated by the island's economy — fell by 0.4 per cent in the first quarter when adjusted for inflation to $1.31 billion.

The decline follows four successive quarters of real GDP growth for the island in a strong 2017.

Today's report from the Department of Statistics showed that GDP before inflation rose 1 per cent during the quarter.

The report said the main driver of the after-inflation decline in GDP was an 11.6 per cent, or $23 million decline in fixed assets, reflecting lower investment in machinery and equipment, such as vehicles and boats. However, investment in construction fixed assets rose 0.5 per cent.

The report added that household consumption fell 0.5 per cent, after inflation, to $612.5 million, as consumers spent less on eating out, motor vehicles and electricity consumption, compared to a year earlier.

A 3.2 per cent increase in government spending in the first quarter, largely due to pay rises for civil servants, was a positive contributor to GDP.

The island's trade surplus in goods and services increased by 6.9 per cent, or $21.6 million, mainly due to a 9.8 per cent decrease in the value of imports, as less machinery and equipment was brought in.

Exports of services rose 1.8 per cent as earnings from the financial and travel services increased. However, the island spent 5.3 per cent more on services from overseas, with the increase due mostly to construction and engineering services, as well as business consultants.

Downturn: real GDP growth in the first quarter of this year did not compare well with the first quarter of the three previous years (Graph by Department of Statistics)

You must be Registered or to post comment or to vote.

Published September 24, 2018 at 6:20 pm (Updated September 24, 2018 at 8:26 pm)

First-quarter real GDP falls 0.4%

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon