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Bermuda Bermuda

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Bermuda

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EconomicPoliticalStructural

Bermuda – Quick View
ECR score49.48 (Mar 2011)
ECR rank70 (Mar 2011)
Economic
GDP (2009)USD 5.69 billion
GNI per capita PPPNA
FDI inflow (Q2 2010)USD -219 million
Inflation (2010)2.4%
Central bank assets (Q3 2010)USD 22,275 million
Unemployment rate (2009)4.5%
Government deficit (2010-11)USD 143.4 million
Tax revenue (2009)USD 748.52 million
Political
Government typeParliamentary democracy
Recent political crisisNA
Economic freedom scoreNA
Freedom of information scoreNA
Corruption perception indexNA
Structural
Birth rate (2009)12.3 per ‘000
Population balanceUnder 14 years – 17.8%
Population balanceOver 60 years (males) – 19%
Population balanceOver 60 years (females) – 15.4%
Life expectancy yearsMales – 76 years
Life expectancy yearsFemales – 82 years
Mortality rate7.3 per ‘000
Literacy rate98%
Internet access75.2%

[Top] Economic Overview

Bermuda’s economy is highly dependent on international business and tourism.

Gross Domestic Product

Gross domestic product, at current market prices of Bermuda in 2009 was BMD 5.7 billion as compared to BMD 6.1 billion in 2008.


(Source: Statistics department)

The country registered growth in its national GDP from 2003 to 2006, but since then the GDP growth has constantly declined to register negative growth of 5.8% in 2009.

In 2009, GDP at constant prices (1996 =100) was registered at BMD 3.8 billion, a decline of 8.1% from 2008 GDP of BMD 4.16 billion.

(Source: Statistics department)

GDP per capita

In 2009, GDP per capita, at current market prices was registered at BMD 86,875. In 2008, the GDP per capita was BMD 92,693.

(Source: Statistics department)


(Source: Statistics department)

Tax rates

Individual income tax

In Bermuda, individuals are exempted from paying income tax. (Source: taxrates.cc)

Corporate Tax

There is no corporate income tax or capital gains tax in Bermuda. However, the companies are subject to pay annual fees which are charged on share capital levels.

Also there are no sales taxes or VAT in the country.

(Source: taxrates.cc)

Inflation

Inflation rate in the country was registered at 2.4% in 2010. In 2009, the rate of inflation was 1.8%. Inflation rate grew constantly from 2005 to 2008 before falling to 1.8% in 2009.

(Source: Statistics Department)


(Source: Statistics Department)

FDI Inflow



(Source: Bermuda Government)

Portfolio Investment Inflow


(Source: Bermuda Government)

Banking Sector Assets

 

Assets of Bermuda Banks and Deposit Companies (BMD million)

End of period

Q3 2010

2009

Cash

80

89

Deposits

6,433

5,651

Investments

6,256

6,457

Loans & Advances

8,423

8,341

Premises & Equipment

512

477

Other Assets

572

611

Total Assets

22,275

21,627

(Source: Bermuda Monetary Authority)

[Top] Financial Indicators & Government Financial

Consumer Price Index


In Bermuda, CPI increased consistently since quarter one of 2009 and reached the highest index mark of 114.9 in the last quarter (Q4) of 2010.

Bermuda Consumer Price Index

(Source: Statistics Department)

Money supply

 

Bermuda Money Supply (BMD million)

 

Q3 2010

Q2 2010

Q1 2010

Q4 2009

Q3 2009

Q2 2009

Notes & Coins in Circulation

122

134

127

137

123

127

Deposit Liabilities

3,706

3,719

3,748

3,840

3,858

3,816

Total

3,828

3,853

3,875

3,977

3,981

3,943

Less: Cash at Banks

60

73

61

70

60

60

Bermuda Dollar Money Supply

3,768

3,780

3,814

3,907

3,921

3,883

(Source: Bermuda Monetary Authority)

Government Expenditure

The total expenditure for the year 2010-11 is estimated at BMD 1,202.2 million. The total expenditure for the year ending March 2009 was BMD 1,187.03 million compared to BMD 1,143.75 million for the year ended March 2008.

(Source: Bermuda Government, Bernews.com)

Public debt levels

Public debt in 2009 was BMD 483.26 million compared to BMD 278.32 million in 2008.

(Source: Bermuda Government)

Official exchange rate

In Jan 2011, the exchange rate for Bermuda dollars per US dollars was 0.99. The minimum exchange rate value for BMD per USD was 0.98 and the maximum was BMD 1.0037 per USD.


(Source: exchangerates.org.uk)

Government finances

Fiscal balance

The fiscal balance of the Bermuda government for 2010/11 was a deficit of BMD 143.4 million. For the year ending March 2009, the fiscal deficit registered at BMD 234.16 million compared to BMD 215.25 million for the year ending March 2008.

(Source: Bernews.com, Bermuda Government)

Total Revenue

The total revenue of Bermuda for the fiscal year 2010/11 was BMD 1,058.8 million.

 

Government revenue for 2010/11

Activities

BMD million

Customs

232.6

Payroll tax

427.1

Companies fees

71.4

Land tax

50

Passenger tax

26.1

Vehicle licenses

28

Stamp duties

45.6

Hotel occupancy

9.5

Immigration

17

Foreign currency

29

All other

122.6

Total revenue

1,058.8

(Source: Bernews.com)

The government revenue for the year ended March 2009 was BMD 952.87 million compared to BMD 928.5 million for the year ended March 2008. (Source: Bermuda Government)

Tax revenue

The total revenue from taxes and duties in 2009 was BMD 748.63 million, an increase of 1.7% from the tax revenue collected in 2008. The total tax revenue in 2008 was BMD 736.25 million.

(Source: Bermuda Government)

Current Account Balance


Bermuda registered a current account balance surplus of BMD 269 million in the second quarter of 2010.

Bermuda Current Account Balance

(Source: Statistics Department)

Balance of Payments

Balance of Payments (BMD million)

 

2010 (till Q2)

2009

Goods

-482

-1,038

Services

203

344

Income

655

1,286

Current transfers

3

-13

Current account balance

378

579

Net financial account

291

286

Net reserve assets

-24

-18

Balancing item

-645

-847

(Source: Statistics Department)

[Top] Labour Force and Employment Overview

The total labour force in the country for 2009 was 38,263 people.

Bermuda Labour Force

(Source: Bermuda Government)

Employment

The number of employed people in Bermuda was 36,549 in 2009 to 36,878 in 2000.

Bermuda Number of Employed persons

(Source: Statistics Department)

Labourforce participation rate

The labour force participation rate in Bermuda for 2009 was 78%. The labour force participation rate amongst males and females for 2009 was 80% and 77% respectively.

(Source: Statistics Department)

Unemployment rate


The total number of unemployed people in 2009 was 1,714 and the unemployment rate was 4.5%. the number of unemployed males and females in the country were 1,139 and 575 respectively.

Bermuda Unemployment Rate

(Source: Statistics Department)

After registering a rate of unemployment as low as 2.6% in 2000, the number of unemployed people in the country increased from 2000 to 2009 and registering at a rate of 4.5% in 2009.

 

Unemployment rate by age group and sex

 

Total

Male

Female

16 - 19

27.5

35.1

18.4

20 - 24

18.3

21.7

14

25 - 29

4.1

8

1.5

30 - 34

4.2

3.3

5

35 - 39

1.8

3.4

0

40 - 44

1.7

1.8

1.6

45 - 49

1.7

2.2

1.2

50 - 54

2.5

4.6

0.7

55 - 59

2.7

2.8

2.6

60+

1.6

1.9

1.3

Total

4.5

6.0

3

(Source: Statistics Department)

Minimum wage

The average median wage in the country is USD 67,183 per annum. The average overall gross salary in the local sector is USD 54,330.7 compared to USD 59,000 in the government sector. For the international sector the average annual salary is USD 78,800 per annum.

(Source:bermuda-online.org, bermuda-online.org)

Level of Unionisation

A few of the trade unions in Bermuda include:

  • Bermuda Industrial Union (BIU)
  • Bermuda Trade Union Congress (BTUC)
  • Bermuda Union of Teachers (BUT)
  • Electricity Supply Trade Union
  • Bermuda Employers' Council

(Source: Bermuda government)

BIU and BTUC are affiliated to the International Confederation of Free Trade Unions.

(Source: ICFTU)

[Top] Political Stability

Bermuda is a self governing British overseas territory headed by a Governor. The Government of Bermuda is based on a parliamentary democracy framework. It is comprised of a Governor, along with a deputy governor, a cabinet and a legislature.

Legislature in the country is bicameral and includes the Senate and the House of assembly. The functions of the legislature include approving laws and supervising government policy and administration. The House of Assembly is comprised of 36 members elected for a term of five years. The Senate includes 11 members and are appointed by the Governor.

(Source: Bermuda Government)

Regulatory Environment in Bermuda

Bermuda is not included in the 2011 Index of Economic Freedom.

Corruption perception

Bermuda is not included in the Corruption Perceptions Index (CPI)

Freedom of Information

The media council of Bermuda was formed with an objective to resolve complaints against media and to safeguard the freedom of expression.

The media focuses on detecting and exposing crime and serious offences and to prevent the public from being misled by an action or statement by an individual or organisation. The media is not allowed to publish inaccurate, misleading or distorted information.

(Source: Bermuda-online.org)

A few of the newspapers in the country are:

  • Mid Ocean News
  • Bermuda Gazette
  • Royal Gazette
  • The Bermudian
  • Bermuda Times
  • Bermuda Now

(Source: Bermuda-online.org)

Judicial system

The Judicial system in country is established by the Constitution of the country as an autonomous branch of the government. The law is based on English law. The main objective of the judiciary system is to deliver judgment on charges of criminal offence, to resolve disputes, to safeguard the rights and freedom of individuals and to protect the law.

Different courts in Bermuda are:

  • Supreme Court
  • Appeals Court
  • Magistrates Court

Magistrate’s court is comprised of the following courts:

  • Criminal Court
  • Civil Court
  • Family Court

(Source: Bermuda Government, Bermuda Government)

[Top] Demographic Overview

In 2009, the total population of the country was 64,400, growing at a rate of 0.3%. Population in 2008 was 64,200.

(Source: World Bank, World Bank)

In 2009, the population below 14 years of age in the country was 17.8% of the total population. Males and females in the age group of 60 years and above accounted for 19% and 15.4% of the total population respectively.

(Source: UN)

Life expectancy

The average life expectancy in Bermuda for 2009 was 79 years. For the same period the life expectancy for males and females was 76 years and 82 years respectively.

(Source: World Bank, World Bank, World Bank)

Birth rate and Mortality rate

In 2009, the crude death rate (per thousand inhabitants) was 7.3. The infant mortality rate for the same period was 1.2 per thousand live births. In the same year, the crude birth rate was registered at 12.3 per thousand people.

(Source: Bermuda Government)

Gender balance

The gender ratio in the country is slightly imbalanced as the number of males per 100 females is 91.6 (2009).

(Source: UN)

Net Migration

International migrant stock till mid-2010 was recorded at 19,900 people. This was approximately 30.7% of the entire population.

(Source: UN)

Rural/ Urban population ratio

The urban population in Bermuda was registered at 100% of the total population in 2007. The growth of the urban population during 2005-2010 was 0.3% while there was no growth in the rural population for the same period.

(Source: UN)

Ethnic Environment

Ethnic groups present in the country are blacks, whites and others. Religions include Anglican, Roman Catholic, and Methodist.

(Source:
Bermuda Government)

[Top] Soft Infrastructure

Literacy Rate

The literacy rate in Bermuda is estimated at 98%.

(Source: pressreference.com)

Education is mandatory in Bermuda for children in the age group 5 to 16 years.

(Source: Bermuda-online.org)

In 2009, there were 5,614 government schools and 3,715 private schools. The country had 1,269 colleges.

(Source: Bermuda government)

Total expenditure by the ministry of education in 2009 was BMD 208,177. Government spending on education in 2008 was BMD 638,355

(Source: Bermuda government)

Healthcare

The Ministry of Health is responsible for the health care system in the country.  Since 2005, there have been various reforms in the system including the introduction of a national health promotion strategy and opening of a new urgent care center. The government also introduced a health insurance plan for seniors.

Total public expenditure on health care in 2008 was 2.5% of GDP while private expenditure was USD 333.3 million.

(Source: Bermuda Health Council)

Total health financing (BMD million)

 

2009

2008

Ministry of Health

8.5

3.39

Department of Health

28.02

29.46

Hospitalization subsidies & MWI grant

119.24

111.19

Public sector sub-total

155.77

144.05

Health insurance

297.39

259.88

Household financing

81.38

71.63

Charitable non-govt. organizations

22.65

20.75

Private sector sub-total

401.96

352.26

Total Health System Financing

557.74

496.32

(Source: Bermuda Health Council)

Leading causes of death in the country are diseases of the circulatory system, cancer, diseases of the respiratory system, diabetes, other external causes, etc.

(Source: Bermuda Health Council)

[Top] Hard Infrastructure

Public transport in the country primarily includes buses, taxis and ferries.

Ports

Major ports in Bermuda are Port of Freeport, Port of Hamilton and St. George’s.

(Source:world port source)

Airports

The only airport in Bermuda is the Bermuda international airport with a runway length of 9,700 ft.

(Source: aircraft-charter-world.com)

Telecommunications networks

In 2009, the country had 57,700 fixed telephone lines, an increase of about 0.2% from 2008. In 2008, the number of fixed telephone lines was 57,600. The number of fixed telephone lines per 100 inhabitants also declined to 88.96 in 2009 from 89 in 2008.

(Source: ITU)

In 2009, mobile cellular subscriptions increased by 7.6% compared to the previous year. The number of mobile cellular subscriptions in 2009 was 85,000 compared to 79,000 in 2008. There were 131.05 mobile subscriptions per 100 inhabitants in 2009 compared to 122.07 in 2008.


(Source: ITU)

Bermuda Internet Users

(Source:internetworldstats.com)

 

In 2009, 51,000 people i.e. 75.2% of the total population used internet services. In 2005, 60.7% i.e. 39,000 people used internet services.

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