Bermuda’s economy has been hit much harder than Government expected by the economic downturn, as gross domestic product (GDP) fell by 5.8 percent in 2009 — or 8.1 percent when inflation is taken into account.

The figures, released today, show that Finance Minister and now Premier Paula Cox was well off the mark when she said in her Budget statement in February this year that the 2009 GDP may have fallen by as much as 2.5 percent.

GDP, which measures the total value of goods and services produced in Bermuda, totalled $5.7 billion.

The contribution of international business, the main pillar of the economy, plunged by $57.4 million last year, on top of a $45.5 million fall in 2008.

Hotels and restaurants saw an even steeper decline and the drop-off of $64.4 million from the previous year saw the sector’s output hit pre-2005 levels. Construction industry output fell $53 million.