Bermuda?s economy is on firm ground and will continue to grow at a healthy rate in 2004 due to a continued buoyant international business sector and construction industry, according to Finance Minister Paula Cox.

And wages are expected to go up during 2004 and the real standard of living in Bermuda is continuing to rise, according to economic data released yesterday. In her Budget speech yesterday Ms Cox projected GDP to grow by between 2.0 and 2.5 percent in 2004 ? to between $3.77 billion and $3.79 billion.

?In Bermuda, the international business sector is expected to continue on its path of steady growth, the construction sector will continue to operate near full capacity and the prospects of additional air lift from the United States bodes well for our tourism sector,? said Ms Cox.

?Based on these positive factors, Government forecasts Bermuda?s GDP to grow in the range of 2.0 to 2.5 per cent in 2004.?

And in the Economic Review, which was published yesterday, officials said that GDP could even be higher than this if the US economy continued to grow during the year.

It also said that the mainsprings of economic growth in 2004 included a stronger labour market, increased employment incomes, higher consumer spending, a greater volume of domestic investment, more Government outlays and the substantially expanded contribution of the international business sector.

Ms Cox also said that while inflation had been at an average of 3.2 percent during 2003, she expected it to stabilise at about 3 percent.

?With a cautiously optimistic outlook for oil prices in 2004, consensus forecasts for consumer price inflation in G7 countries for 2004 is in the range of 1.5 to 2.6 percent.

?Barring any sharp increases in university and private education costs in 2004, Government anticipates that Bermuda?s inflation rate should moderate in 2004 and track in a range centred around 3.0 percent.?

And while there had been a loss of jobs during 2003 due to the closure of hotels and restaurants following the devastation caused by Hurricane Fabian, things would be better during 2004 and employment should return to 2002 levels.

And the Economic Review backed these findings up, painting a rosy picture for the economic outlook for 2004.

?In general, Bermuda?s economy is on firm ground,? said the report, published yesterday, ?and it is moving ahead with confidence. National production is expanding, the labour market has stabilised, and jobs in tourist-related industries are expected to grow again. ?Employment incomes are increasing. While consumer prices are also still rising, inflationary pressures are moderating. So for the Bermudian community as a whole, the real standard of living is continuing to rise.?

Consumer spending will rise both at home and abroad and construction will continue to grow and international business expected to grow at a rate of about 7 percent.