Shows that Despite Facing Recent Economic Pressures, Bermuda and the United States Expanded Their Overall Economic Relationship
Bermuda Now the Most Important International Provider of Insurance Services to the United States; Trade and Investment Relationship with the United States Sustained 301,000 jobs in 2010.
Business Bermuda released yesterday evening its 2011 Economic Impact Study, which assesses the role that Bermuda plays in the U.S. economy based on economic data from 2009 and 2010. The 2011 Economic Impact Study was issued at a presentation by Charles Ludolph, an economist with Albright Stonebridge Group, to Business Bermuda members.
According to the 2011 Economic Impact Study, Bermuda and the United States expanded their overall economic relationship between 2008 and 2010, despite the recent economic crisis. In 2010, Bermuda, for the first time ever, became the most important international provider of insurance services to the United States.
Among the key highlights were:
• Even while facing the economic recession, two-way trade in services between Bermuda and the United States grew to more than $80 billion by 2010.
• Bermuda became the leading supplier of reinsurance to the United States and the leading export market for the U.S. primary insurance sector all while many offshore financial centres suffered setbacks in their U.S. relationships between 2008 and 2010.
• Bermudian international service and multinational holding companies sustained 301,000 U.S. jobs in 2010.
• U.S.-Bermuda Trade in R&D and banking and investment services grew by $4 billion in the last two years alone.
• Bermuda is a major contributor to U.S. energy security as shipping companies domiciled in the country provide $1.1 billion in energy-related shipping services (oil tankers, oil rigs, and LNG ships) that are designed to work with existing U.S. refineries, ports, and pipelines.
“The data in this study shows that the economic relationship between the United States and Bermuda continues to strengthen with Bermuda’s value as both a trading and investment partner with the United States increasing substantially over the last couple of years." said Charles Ludolph, Economist and Senior Vice President with ASG.
“The study also found that Bermuda plays a significant role in supporting Chinese and other Asian nation investment in global production and trade in semiconductors. More than 50,000 US hi-technology jobs depend on U.S.-Chinese joint ventures domiciled in Bermuda. This indicates that new global corporate inversions are establishing in Bermuda as these holding companies mobilize innovation and capital in new ways.”
Premier Paula Cox commented: “I am pleased to read that the results of Business Bermuda’s initiative – the third edition of the U.S. – Bermuda Economic Impact Study 2011 – supports our conviction that this government’s economic policy is working to the betterment of our people. It proves that the relationship between Bermuda and the United States is strong and growing stronger even despite the most recent global economic crisis. There are a substantial number of positive statistics that illustrate that, while difficult decisions must be made in many instances, our decisions are sound and the approach is right.”
“While the effects of the global economic crisis still continue to ripple through the globe, it’s extremely encouraging to see, according to the Business Bermuda 2011 Economic Impact Study, that Bermuda continues to show resilience and remains a steadfast economic partner to the United States and a key contributor to their economy.” said Cheryl Packwood, CEO of Business Bermuda. “Bermuda, like many countries, hasn’t been immune to challenging issues during the last few years, however we’ve remained convicted to foster a more interdependent relationship with the U.S and, as evidenced by our leadership position in providing insurance and reinsurance services as well as the thousands of jobs created for the U.S., we’ve been ecstatic to achieve this goal.”
Ms. Packwood added, “These positive developments and blossoming relationship with the U.S. is something that all Bermudians should be proud of as they continue to engage the global business community. This study is an invaluable resource for Bermuda as it continues along a path of economic growth.”
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