FRIDAY, OCT. 26: Job losses and business closures are responsible for Bermuda’s Gross Domestic Product falling 3.5 per cent in 2011.
This according to the Department of Statistics, which released a report on Friday.
The report stated GDP was down $5.6 billion in 2011 from 2010.
It said: “Continued job losses and business closures adversely affected production, leading to the third consecutive year of negative growth.
“Ten of the 15 industrial sections experienced lower economic activity, with the strongest impact felt in the construction, manufacturing and international business sectors.
“Overall, the decline in economic growth translated into a 4.1 per cent fall in GDP per capita, which measured at $85,996 per person in 2011.”
When adjusted for inflation, the growth in economic activity decreased 2.8 per cent.
International business activity declined 8.3 per cent while the value for the hotel and restaurant industry fell 2.2 per cent.
Real estate and renting activities, which is Bermuda’s second leading industry by GDP, rose by 6.3 per cent thanks to realty companies being nimble enough to cut costs faster than what output was declining.
Income from rental of buildings and commissions for private sector realtors fell by nearly 30 per cent but was offset by an estimated increase in the rent of owner occupied buildings.