Bermuda’s gross domestic product — an indicator of the performance of the economy — grew by almost five percent last year, about half the growth of 2007.

According to a report released this morning by Government’s Department of Statistics, GDP, which measures the total value of goods and services produced in Bermuda, grew 4.6 percent in 2008.

However the report said: “When adjusted for inflation, the growth in economic activity was effectively flat at 0.7 percent. In comparison, the United States, which is Bermuda’s largest trading partner for both goods and services experienced real GDP growth of 1.1 per cent.”

It added: “Businesses engaged in financial intermediation, professional business services and construction activity experienced the largest nominal increases. However, the decline in international business activity tempered the overall growth in 2008.”

* Full story and analysis in tomorrow's business section of The Royal Gazette