A measure of Bermuda’s economy increased in the first quarter of this year, driven mostly by higher investment in machinery and transport equipment.

The island’s gross domestic product from January through March was $1.69 billion, up 1.6 per cent year-on-year, when measured at current prices.

However, when adjusted for inflation, measured at 1.8 per cent during the quarter, real GDP fell 0.2 per cent.

There was a $23.7 million decrease in net surplus on trade in goods and services, primarily due to higher payments for imports of goods and services.

Household consumption was $810.2 million, up an inflation-adjusted 0.3 per cent, while Government consumption was $239.3 million, up 0.7 per cent when adjusted for inflation.

The data was published by the Bermuda Government Department of Statistics, which in a commentary said: “Imports of goods and services, which have a downward effect on GDP growth, rose $36.6 million reflecting higher payments for imported goods as well as increased outlays for professional and management consultancy services.

“In contrast, receipts from the exports of goods and services rose $12.9 million due partly to increased tourist expenditure and revenue collected for government services provided to non-resident companies. In real terms, the net surplus on trade in goods and services decreased 9.5 per cent.”