Good morning to the media and the people of Bermuda.

Bermuda’s economy continued to trend in a positive direction in the 4th quarter of 2021 capping a year of strong economic growth.

4th Quarter GDP

After adjusting for inflation, real GDP increased by 1.0% during the fourth quarter of 2021 and represents the third straight quarter of growth compared to the corresponding quarters of the previous year. 

Contributing to this growth was a 3.8% rise in consumer spending in the fourth quarter compared to the previous year. Locally, this consumption was reflected mostly in spending on personal care services and accommodation. 

Business investment in capital goods grew by 5.6% due primarily to investment in machinery and equipment like furniture and pleasure boats.

In contrast, consumption by the Government fell by 7.4%, with lower expenditure on materials, supplies and insurance payments.

4th Quarter Balance of Payments

Bermuda's trade in goods and services with non-residents resulted in a $217 million surplus for the fourth quarter of 2021, increasing $6 million from a year ago. Bermuda increased its foreign exchange earnings from the exports of services mostly related to transactions in business and travel services. However, some of this growth was tempered by faster growth in the imports of goods such as fuel and transport equipment and a rise in payments for services such as air passenger transport and freight transport services.

Bermuda's stock of foreign assets exceeded its stock of foreign liabilities by $4.6 billion.

2021 Economic Performance

I am pleased to report that for the full year of 2021, preliminary estimates shows overall GDPgrowth in real terms of 3.8%. The positive 2021 economic performance is supported by growth in International Business, the rebounding of Tourism, increases in domestic investment and strong consumer spending. 

In 2021, Bermuda continued to see growth in International Business. 2021 saw a 27.4% increase in new registrations, with 934 new companies arriving on our shores, and a 4% increase in jobs or 171 new positions.

Tourism arrivals and expenditure were up as Bermuda's tourism industry re-opened for leisure and business visitors. Bermuda’s tourism sector saw a 77.8% improvement in air visitor spending. In addition, hotel gross receipts annually were 70.4% above 2020 levels.

Employment Income for 2021 was 5.3% above the 2020 level and on par with 2019. Industries such as International Business and Business Services reported strong growth in employee remuneration.

Economic Policies

While Bermuda still has work to do to sustain this upward momentum and speed up lagging job growth, the upcoming year will see further progress made on the Economic Recovery Plan. 

The Government is not only working towards the implementation of the Economic Recovery Plan, but there are other entities working in parallel to support economic development, including:

The Bermuda Business Development Agencycontinues its focus on attracting business to Bermuda in the areas of Asset Management, Climate Risk Finance, High Net-Worth Services, Infrastructure, Insurance and Risk, and Technology.

The BDA will be heading back to the New York City on May 11 for its first executive forum since March 2019. This complimentary half-day event will inform key senior decision makers about why Bermuda is the best place in the world to bring innovative international business ideas to market. This event builds upon the BDAs climate risk roadshows in NYC which took place late last year.

The Bermuda Economic Development Corporation supports new and existing businesses with education, guidance, advocacy, networking and financing.  The organisation’s key objective remains to assist the Government in encouraging economic growth for Bermuda’s local small and medium sized businesses.

The Economic Development Department is active on several fronts, with its mission “to advance the sustainable growth, development, and diversification of Bermuda’s economy.” In order to achieve that, the Department will:

▪ Facilitate, create, and implement policies to support the Economic Recovery Plan;

▪ In collaboration with industry stakeholders, position Bermuda as an ideal test market for innovative product and industry development; and 

▪ Identify, develop and implement policy and legislative initiatives that generate industry confidence.

Conclusion

While much has been done to support our economy, this Ministry recognises that we have much more to do. The Government, however, cannot do it alone. Our success as a country will only come about through partnerships with local businesses. Together we can and must do our part to create an environment that encourages economic growth while providing opportunities for Bermudians. It is evident that through working together, Bermuda will see its best days.

For more detail on today's information, the 2021Q4 Balance of Payments & International Investment Position and the Quarter 4, 2021 Quarterly GDP by Expenditure publications are available at the Department of Statistics on gov.bm.