4.3% drop in GDP for the first quarter of 2021
Quarterly gross domestic product [GDP] per expenditure release was released, showing GDP in constant prices for the first quarter of 2021 compared to the first quarter of 2020 decreased 4.3% to $ 1,686.5 million.
A government spokesperson said: “Today the Minister of the Cabinet Office, the Hon. Wayne Furbert, JP, MP, released Quarterly Gross Domestic Product for Q1 2021 [GDP] by publication of expenditure.
Minister Furbert explained: “After adjusting for inflation, GDP in constant prices for the first quarter of 2021 compared to the first quarter of 2020 decreased by 4.3% to stand at 1,686, $ 5 million. The decline in growth was mainly influenced by the decline in final consumption expenditure and the decline in gross capital formation and the surplus in the external balance of goods and services.
Charts taken from the report
Analyzing the components, continued the Minister, “final consumption expenditure fell by 3.8%, reflecting declines in both final household consumption and final government consumption”.
“Household final consumption fell 3.6% year-on-year to $ 706.3 million. Higher spending on durable goods was offset by lower spending on services, non-durable goods and semi-durable goods.
The Minister added: “Consumption of services, which accounted for 74% of total consumption, fell by 3.9 year-on-year due to lower spending on food and beverage services. accommodation and air transport services which have all been negatively affected by various COVID-19. pandemic restrictions. Spending on cleaning services also declined over the period. For non-durable and semi-durable goods, spending fell 3.9% as lower purchases of fuel and personal care products offset small increases in spending on food, alcoholic beverages and clothing. In contrast, spending on durable goods rose 3.9% mainly due to higher spending on motor vehicles. “
“For government final consumption, a 4.6% drop in the quarter was due to lower payments for materials and supplies, travel, legal services, insurance and building rentals. Payments for salaries, wages and overhead costs for employees declined as overtime expenses and pension contributions declined. In contrast, spending on local service providers, medical supplies and medical equipment increased during the period due to the public health emergency related to the coronavirus. “
“The Minister further explained:” The gross capital formation [i.e. investment in fixed assets] fell 7.0% to $ 208.7 million. Construction-related gross capital formation recorded a decline of 14.3%, with a decrease in construction activity for large projects offset by increased activity in new residential construction and civil works such as renovation of roads, docks and bridges. Investment in machinery and equipment increased by 2.3% due to the import of communication equipment, transport equipment, wood and metal furniture.
“The external balance of goods and services fell 4.1% to 581.9 million dollars. This decline mainly reflects lower revenues from exports of goods and services, which fell 5.5% due to lower visitor spending compared to the first quarter of 2020 and a contraction in revenues from financial services, ICT services and fuel sold to visiting airlines. Imports of goods and services fell 7.5%, as payments fell for passenger transportation, travel services, professional and management services, as well as lower payments for imported fuel and certain equipment such as than magnetic resonance imaging devices. “
“The public is advised to read the concepts and definitions on the last page of the publication before reviewing the data. “
Full Quarterly Release of Q1 2021 GDP follows below [PDF here]:
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