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Bermuda’s rapid economic expansion eased during the third quarter of 2024. After adjusting for inflation, the economy tapered by an estimated 1.1 per cent year-over-year. 

Economic contraction in the third quarter was a direct result of the increases in Imports of Goods and Services and contractions in Household and Government expenditures. In current prices, Gross Domestic Product (GDP) decreased by 1.4 per cent year over year.

In contrast to the third quarter economic performance, the first quarter GDP Estimates have been revised upwards from a 6.6 per cent increase to a 6.8 per cent increase, and second quarter estimates have been revised upwards from an 8.7 per cent increase to a 9.5 per cent increase. 

Consumer Spending

Consumer spending in the third quarter declined 0.6 per cent year-over-year to $825.8 million. Consumption of services increased 0.6 per cent year-over-year, reflected in higher expenditures on services related to vehicle maintenance and repair. 

Spending on non-durable goods fell 1.6 per cent influenced primarily by decreased spending on clothing, footwear, and alcoholic beverages.

Spending on durable goods contracted 2.5 per cent due to reduced spending on new and used cars, furniture and furnishings, and major household appliances.

Employment Income

Employment income in the third quarter was 6.5 per cent above 2023 levels. Employment income in the following industries increased in the third quarter of 2024:

• International Business (8.7%)

• Hotels & Restaurants (8.5%)

• Banking Insurance & Real Estate (6.7%)

• Business Services (10.6%)

• Wholesale & Retail (2.8%)

• Public Administration & Defence (3.0%)

• Construction (4.5%)

• Transport and Communication (15.3%)

The third-quarter growth in employee remuneration in these sectors is positive, and the income levels continue to outpace pre-pandemic employment income levels.

Tourism

The island hosted 66,920 air visitors during the third quarter of 2024, up from 61,432 in the third quarter of 2023. Estimated expenditure by air visitors increased to $139.4 million from $111.5 million in the third quarter of 2023.

Government Expenditure

Government Final Consumption declined by 1.6 per cent during the quarter, driven by lower expenditures on insurance, wages and professional services. 

Business Investment

Investments grew by 10.9 per cent to $208.2 million. Investment related to construction rose 5.1 per cent, while investment in machinery and equipment increased by 17.3 per cent due to higher agricultural and industrial machinery imports.

The External Balance of Goods and Services

Bermuda’s Trade Balance fell by 7.8 per cent to $352.5 million as payments for the Import of Goods and Services outpaced the growth of receipts for the Exports of Goods and Services. Exports of Goods and Services increased by 10.0 per cent during the quarter, partly due to increased revenues related to travel and other services. Imports of Goods and Services increased by 26.6 per cent as payments rose for business, transportation and travel services. The Imports of Goods rose 40.3 per cent with increased imports of fuels and machinery.

Business Registrations

Bermuda’s business ecosystem remains robust, and total local business registration increased year-over-year, bringing the complete business register to 4,003. During the third quarter of 2024, 48 new local businesses registered in Bermuda. 

Conclusion

The third quarter economic performance highlights that Bermuda’s economy remains robust despite easing growth. The Government will continue to execute the strategic initiatives outlined in Bermuda’s Economic Development Strategy to ensure that Bermuda experiences sustainable economic growth and development.

For more information, please review the Quarter 3, 2024 Quarterly GDP by Expenditure and Balance of Payments and International Investment Position publications available at the Department of Statistics online at gov.bm.