Economy boosted by business investment and trade balance
Promising economic indicators shown for the second quarter of this year are expected to continue for the rest of 2024, according to the economy and labour minister.
Jason Hayward attributed the island’s “rapid expansion” in part to the growth of international business and the community of businesses serving the sector.
He added: “There’s also opportunity to grow as it pertains to gross capital formation, so we expect continued positive economic performance.”
It follows the announcement last week of the 2023 gross domestic product figures showing the economy “surpassing the $7 billion mark”, Mr Hayward said, putting Bermuda “well above pre-pandemic numbers”.
“During the second quarter of 2024, the economy grew by an estimated 8.7 per cent year-over-year after adjusting for inflation,” he added.
“Economic expansion was a direct result of increased trade balance and business investment.
“Gross domestic product by expenditure in current prices increased by 10.1 per cent during the second quarter.”
The minister listed an array of figures that he credited to a thriving business environment.
Consumer spending held steady compared with Q2 in 2023 at $807.5 million, while household consumption of services edged up marginally by 0.4 per cent year-over-year, reflecting greater expenditure on travel.
Spending on durable goods rose 4.9 per cent, largely owing to higher spending on new and used cars and motorcycles.
Government consumption rose 1.1 per cent, with higher spending on insurance, wages and professional services.
Employment income for the second quarter was 8.8 per cent overall above the same time in 2023, Mr Hayward said.
International business came in top at 16.2 per cent, followed by transport and communication at 13.1 per cent and 8.7 per cent in the banking, insurance and real estate sector.
Gross capital formation grew 1.6 per cent to $220.9 million.
Construction investment fell by 1.4 per cent, but investment in machinery and equipment rose 4.4 per cent, which Mr Hayward attributed to higher furniture imports as well as agricultural and industrial machinery.
The island’s trade balance — the difference between the export of goods and services and their import — increased 34.2 per cent, to $541 million.
The export of goods and services increased 19.2 per cent during the quarter.
Mr Hayward added: “Bermuda’s business ecosystem remains robust.
“In terms of total business registrations, 180 new businesses were registered in Bermuda during the second quarter of 2024.
“Thirty-four new local companies were registered, bringing the local business register to 3,958, up 2.1 per cent over the total local business registered in Q2 of 2023.”
• To see the minister’s statement in full, see Related Media
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