Good day to members of the media and the listening public...
Bermuda’s economy demonstrated strong economic performance last year. The 2023 Annual Gross Domestic Product (GDP) report from the Department of Statistics confirmed that the Bermuda economy grew by 4.9% in real terms to $7.0 billion in 2023, marking the third consecutive year of economic expansion.
This growth exceeds the Ministry of Finance’s estimate, outlined in the 2023 National Economic Report of Bermuda, which estimated the economy may have grown between 4.0% and 4.5% in 2023. While our 2023 quarterly GDP figures clearly indicated our economy was on track to meet those estimates, it is immensely satisfying to report this notable economic achievement to the country. The data indicates that in 2023 Bermuda had one of the fastest growing economies in the Latin American and Caribbean region.
Bermuda’s economy increased by 9.0% in nominal terms in 2023. At current prices, the GDP per capita rose to $134,088 at the end of 2023. This compares with a GDP per capita of $122,978 in 2022.
Overall, economic activity increased for 14 of the 19 industrial groups year-to-year, contributing positively to the real GDP growth, with 11 sectors exceeding 2019 pre-pandemic levels. It is no small feat to continue the island’s post-pandemic progress in this manner.
Bermuda’s economic growth was led by International Business Activities, which grew by $117.2 million. This industry, which had an historic 4,927 filled jobs in 2023, was the largest contributor to the GDP at 29.0% of total GDP. Businesses engaged in insurance management, insurance brokerage services, and reinsurance experienced increases in value added (although businesses related to communication services activities, business services, and portfolio advisory services experienced declines in value added).
Financial and Insurance Activities followed International Business Activities with an increase of $72.9 million, due mainly to an increase in the activities of holding companies.
Accommodation and Food Services rounded out the ‘top 3’ industries with the largest growth in absolute terms, rising by $53.6 million. This growth was primarily fueled by $35.8 million in value added for accommodations, while Food Services Activities also grew.
The fourth largest contributor to growth was Professional, Scientific and Technical Activities, which accounted for an increase of $29.4 million in value added in 2023. The sub-industry groupings of scientific research and development, and accounting, book-keeping and auditing activities, management consultancy, veterinary activities, and architectural and engineering activities all experienced growth in value added.
The remaining industries that demonstrated positive economic performance included:
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Transportation and Storage activities, which grew by $11.4 million, boosted mainly by value added through air transport and passenger land transport;
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Wholesale and Retail Trade increased by $10.7 million due to strong Retail Trade activities;
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Information and Communication services gained in value added by $10.4 million, driven mainly by growth in publishing services and telecommunications;
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Education activities rose by $7.6 million;
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Administrative and Support Services increased by $6.3 million;
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Real Estate Activities recorded an increase of $5.8 million;
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Arts, Entertainment and Recreation activities rose by $5.4 million;
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Manufacturing increased by $4.6 million, reflecting increases in activities related to furniture and textiles, wearing apparel, leather and leather products;
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Other Service Activities rose by $2.9 million, which includes funeral and related activities, hairdressing and beauty treatment, and personal care services; and,
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Human Health and Social Work activities increased in value added by $2.3 million in 2023.
The industry that recorded the largest decline in activity was the Construction and Quarrying industry, which fell by $12.1 million. The decrease in this industry was mainly attributed to overall reductions in construction projects.
Overall, based on the Annual GDP report on economic activity for 2023, Bermuda’s economy is doing well, but we will not rest. The Government is encouraged by the solid economic performance of the local economy, and we will continue to facilitate Bermuda’s economic expansion by creating a business ecosystem that allows businesses to thrive.
The Economic Development Strategy 2023-2027 outlines the economic priorities that will drive the initiatives required for a prosperous economy.
For more information, please review the 2023 Annual Gross Domestic Product report, available at the Department of Statistics online at gov.bm.
Thank you.