GDP falls 5.8 per cent in 2009

FRIDAY, DECEMBER 3: Bermuda’s Gross Domestic Product fell by 5.8 per cent in 2009. When adjusted for inflation it was down 8.1 per cent.

Bermuda’s GDP per captia fell to $86,875 in 2009, down from 2008’s high of $92,693.

This according to a report released by the Department of Statistics today.

The only industry sector to report an increase in 2009 was public administration, which was up $10.7 million.

The education, health and social work sector remained static year-over-year from 2008 to 2009.

Economic growth for the international business sector declined for the second consecutive year. Gross vale added declined by $57.4, which was on the heels of a $45.5 million decline in 2008.

The decline in international business also led to a steep drop off to the financial services sector, which declined 27.5 per cent in 2009. Plunging bank deposits, lackluster returns on investments and reduced profits were all highlights of an exceptionally tough economic year for the local banking industry.

The hotel and restaurant industry’s vale added fell by $64.6 million as air visitors declined to around 230,000 – down 120,000 since the PLP became the Government in 1998.

Some hotels laid off staff, closed guest rooms and offered other hotel services on a rotational basis only.

Restaurants and bar sales fell nine per cent in 2009.

The output of the construction industry was off $53 million last year. The value of new construction projects started in 2009 totaled $195.8 million, which was 38 per cent below 2008 levels. A total of 161 fewer construction workers were employed in 2009 than 2008.

Retail sales were down as job losses meant less people were on island to spend their paycheques. There were 80 fewer retail jobs in 2009 than 2008.