Earlier today, the Minister of Economy and Labour, the Hon. Jason P Hayward, JP, MP, held a press conference to provide a first-quarter 2023 Economic Update. Bermuda's economy continues to expand and show resilience. During the first quarter of 2023, the Bermudian economy grew by an estimated 3.6 per cent year-over-year after adjusting for inflation.
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 6.0 per cent during the first quarter.
Senator Leslie Robinson, the Junior Minister of Economy & Labour and Public Works, accompanied the Minister at today's press conference.
Remarks
The Hon. Jason P. Hayward JP, MP
The Minister Of Economy and Labour
Good day to members of the media and the listening public.
Quarterly GDP and Economic Performance
Bermuda's economy continues to expand and show resilience. During the first quarter of 2023, the Bermudian economy grew by an estimated 3.6 per cent year-over-year after adjusting for inflation.
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 6.0 per cent during the first quarter.
Consumer Spending
Consumer spending in the first quarter increased 1.1 per cent year-over-year to $760.7 million. Consumption of services increased 1.1 per cent year-over-year, reflected in higher expenditure for air transport, vehicle maintenance and repair, and personal care services. Spending on durable goods rose by 5.7 per cent due largely to increased expenditure on furniture and furnishings, new and used motor vehicles and motorcycles.
Employment Income
Employment income in the first quarter was 7.9 per cent above 2022 levels. Employment income in the following industries all increased in the first quarter of 2023:
- International Business
- Hotels & Restaurants
- Banking Insurance & Real Estate
- Business Services
- Wholesale & Retail
- Construction
- Transport and Communication
The first-quarter growth in employee remuneration in these sectors is positive, and the income levels are also outpacing pre-pandemic employment income levels.
Tourism
The island hosted 24,667 air visitors during the first quarter of 2023, up from 12,280 in the first quarter of 2022. Estimated expenditure by air visitors increased to $43.4 million from $22.6 million recorded in the first quarter of 2022.
Government Expenditure
Consumption by the Government declined 3.2 per cent during the quarter, with lower expenditure on salaries, professional services and equipment.
Business Investment
Furthermore, Gross Capital Formation declined 4.3 per cent to $197.2 million. Investment related to construction fell 6.3 per cent. Investment in machinery and equipment also decreased by 2.1 per cent due to lower imports of water filtration, refrigerating or freezing equipment and industrial machine parts.
The External Balance of Goods and Services
Bermuda’s Trade Balance rose 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 of goods and services increased by 6.1 per cent during the quarter, partly due to increased fuel exports to visiting airlines and higher receipts related to travel services.
Business Registrations
Total business registration increased year-over-year, bringing the complete business register to 16,101. There were 233 new businesses registered in Bermuda during the first quarter of 2023.
Conclusion
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.
For more information, please review the Quarter 1, 2023 Quarterly GDP by Expenditure publication available at the Department of Statistics online at gov.bm.
Thank you.