Bermuda’s economy grew by an estimated 3.6 per cent in the first quarter of 2023 compared with the same period last year, the Minister of Economy and Labour said yesterday.

Jason Hayward added that the figure was calculated after adjusting for inflation.

He said: “Economic expansion was a direct result of increased household expenditure and growth in the export of goods and services.

“GDP in current prices increased by 6 per cent during the first quarter.”

Mr Hayward said that consumer spending in the first quarter of this year increased 1.1 per cent year-on-year to $760.7 million, reflecting higher expenditure for air transport, vehicle maintenance and repair, and personal care services.

Spending on durable goods rose by 5.7 per cent largely thanks to increased spending on furniture, furnishings and road vehicles.

Employment income was 7.9 per cent above 2022 levels with increases seen in the first quarter of 2023 in international business, hotels and restaurants, banking insurance and real estate, business services, wholesale and retail, construction and transport and communication.

Mr Hayward said: “The first-quarter growth in employee remuneration in these sectors is positive and the income levels are also outpacing pre-pandemic employment income levels.”

There were close to double the number of air visitors during the first quarter of 2023 – 24,667 compared to 12,280 in the first quarter of 2022. Estimated expenditure by air visitors rose to $43.4 million from $22.6 million in the same period last year.

Government expenditure declined 3.2 per cent during Q1 of 2023 with lower expenditure on salaries, professional services and equipment.

In the business investment sector, gross capital formation [formerly gross domestic investment] declined 4.3 per cent to $197.2 million.

Construction investment was down 6.3 per cent; investment in machinery and equipment also decreased by 2.1 per cent owing to lower imports of water filtration, refrigerating or freezing equipment and industrial machine parts.

Mr Hayward said: “We have lower levels of construction than we did in the first quarter of 2022.

“It is one of the areas that we need to improve in terms of increasing level of construction work taking place within our economy.

“Once you see that, all the other related indicators like machinery and equipment — you will see increase in those areas as well.”

Bermuda’s trade balance increased by 11.3 per cent to $703 million as a result of receipts for the export of goods and services growing, while payments for the import of goods and services declined.

Exports rose by 6.1 per cent during this year’s first quarter, in part owing to increased fuel exports to visiting airlines and higher receipts related to travel services.

Additionally, business registrations increased year-over-year bringing the complete business register to 16,101 with 233 new business registered during the first quarter of this year.

The minister added: “The Government continues to facilitate the expansion and sustainability of Bermuda’s economy by creating a business environment which allows businesses to thrive.

“The Government will continue to execute the strategic initiatives outlined in Bermuda’s Economic Development Strategy to ensure Bermuda experiences sustainable economic growth and development.”