International business continues to be the key player in Bermuda's economy, as borne out by the latest figures released by Government.

The Department of Statistics Gross Domestic Product report revealed that the sector registered double digit growth during 2007, while the value added for the industry climbed 22.4 percent or just over six percentage points over the five-year average, contributing more than half of the growth in Bermuda last year (58 percent of the total increase).

The report also showed that construction and retail sales activity bounced back from 2006 levels, while tourism growth slowed and real estate dropped off.

Bermuda generated $5.85 billion of wealth in 2007, which works out at $91,477 per person, putting it at the top of the table of countries for gross domestic product (GDP) per capita. It is just ahead of the likes of Qatar at $87,600 and Luxembourg at $79,400, according to 2007 estimates in the CIA World Factbook. The Island's GDP rose by 9.4 percent in 2007 - or 4.6 percent after inflation.

It said that despite a softening international insurance market via declining commercial insurance premiums, mainly directors' and officers liability, workers' compensation and general liability premiums, the industry still recorded the biggest percentage growth compared to other sectors, driven in part by the addition of about 1,700 newly-registered international companies during the year.

Meanwhile the report proved that value added in the international business sector almost quadrupled from 10 years ago and has outpaced the growth of the total economy by twice as much, while, in 2007, it maintained its status as the largest employer on the Island with 4,689 jobs.

Industries providing professional and other services to the international business sector benefited from increased demand for their services, with output from the business services industry, including computer, accounting and legal services, advancing nine percent, and financial services expanded 11.3 percent, associated with increased licensing, supervisory and incorporation fees collected from international firms and higher credit demands. Provider of communication services also saw gains of 11.2 percent in output.

The construction industry experienced a 4.7 percent rise in value added last year, as the focus for activity turned to building installation and completion work for projects that neared finishing at the end of 2006, while both the public and private sectors noted increased building activity compared to the previous year.

The value of construction work in the public sector more than doubled to $63.2 million, resulting from the development of a new cruise port, golf course improvements and site preparations for the new court house and police buildings.

Private sector construction grew by $81.9 million (7.6 percent), centring on residential projects such as condominium developments, housing units and major renovations to one of the Island's hotels.

But employment in the industry contracted by 109 jobs, accounting for the fall of construction output in real terms.

The retail sector also saw value added advance 6.1 percent in 2007, however, the figure was down at 2.3 percent after adjusting for inflation, with the apparel, food and household appliance sub-sectors leading the way.

Employment rose by 1.8 percent for the first time since 2002, as 83 new jobs were created, while domestic retail sales and overseas spending by residents grew at similar rates of 4.7 percent and 4.9 percent respectively.

The pace of growth in the hotel and restaurant industry slowed to 5.7 percent last year, slightly lower than the five-year average of 5.9 percent, influenced by a slowdown in tourist arrivals on the Island and 91 fewer employees in the sector.

Growth in air and cruise ship arrivals also slowed during the year to 2.2 percent and 5.3 percent respectively, with value added accounting for 5.4 percent of total GDP in 2007, down from its 7.5 percent share a decade ago.