HAMILTON, Bermuda - The Bermuda government says the economy has expanded by an estimated 0.5 per cent in the first quarter of this year building on “good momentum and strong growth” in 2025.
Economy and Labour Minister, Jason Hayward, told a news conference that in current prices, gross domestic product (GDP) increased by 2.3 per cent for the first quarter, highlighting the additional impact of rising implicit prices.
“This growth matters because a stronger economy creates the foundation for more employment opportunities, higher incomes, greater business activity and improved government revenues,” he told reporters.
Hayward said that the economic growth resulted from increased household expenditure and construction activity noting that consumer spending in the first quarter increased 2.6 per cent year-over-year to US$827.7 million.
He said this increase reflects growth in the total amount of money consumers spent on goods and services during the quarter.
According to the figures released at the news conference, consumption of services increased by 2.1 per cent year-over-year, reflected in higher expenditure for catering, accommodation and postal services.
Spending on durable goods rose 9.7 per cent, with notable increases in purchases of information processing equipment, motorcycles and new and used cars. At the same time, spending rose 1.4 per cent in large part due to expenditures on accompanied personal goods, motor fuels, food and non-alcoholic beverages.
Hayward said that this increase in consumer spending in Bermuda’s first quarter demonstrates “a favourable economic environment and positive consumer confidence, with growth in both service consumption and the consumption of goods”.
The official figures show that in the first quarter of 2026, employment income rose by 6.3 per cent compared to 2025 levels with notable increases in employment income being observed across most industries, including construction (12 per cent), public administration & defence (11.6 per cent), banking, insurance & real estate (six per cent), hotels & restaurants (4.5 per cent), international business (5.3 per cent) and wholesale & retail (3.3 per cent)
“This growth in employee remuneration across most sectors reflects positive economic performance, indicating a robust labour market. Sectors in which employment income abated include business services and transport and communications,” Hayward said.
According to the official figures, Bermuda welcomed 29,426 air visitors in the first quarter of 2026, an increase from 27,649 for the same period last year. The estimated expenditure by these visitors also rose, reaching US$55.3 million, up from US$48.5 million reported last year.
The government’s consumption decreased by 5.6 per cent to US$190.3 million, reflecting lower expenditure on goods and services. Gross capital formation increased 0.6 per cent to US$198.2 million and construction investment continued its strong performance, increasing by 8.1 per cent.
Investment in machinery and equipment saw a decrease of 6.2 per cent, driven by lower imports of industrial machinery, transportation equipment and medical machinery and Hayward told reporters that Bermuda’s trade balance abated 0.1 per cent to US$831.0 million, as both payments for imports of goods and services and receipts from exports of goods and services declined.
Exports of goods and services decreased by 0.1 per cent during the quarter. In addition to the imports of goods and services decreasing 0.1 per cent.
The government figures show that there were 58 new local businesses registered in Bermuda during the first quarter of 2026 and that total local business registration decreased year-over-year, bringing the complete business register to 3,660.
“The government is committed to fostering the expansion and sustainability of Bermuda’s economy by cultivating a business environment that allows businesses to flourish. The Q1 2026 economic growth is an important signal that Bermuda’s economy continues to demonstrate resilience and forward momentum,” Hayward said.
Meanwhile, the government says it has noted concerns raised regarding recent updates to the Closed and Restricted Job Categories affecting certain entry-level positions within Bermuda’s insurance and reinsurance sector.
“The Government of Bermuda recognises its responsibility to protect job opportunities for Bermudians. Bermuda’s international business sector, including insurance and reinsurance, is critical to our economy. But its success must also create meaningful pathways for Bermudians, particularly young Bermudians seeking their first opportunity to establish a career,” the Ministry of Economy and Labour said in a separate statement.
It said that the entry-level positions now included in the Closed Job Category are the types of roles through which many Bermudians have built successful careers in insurance, reinsurance, claims, underwriting and broking.
“Young Bermudians should have opportunities to begin their careers in these industries in their own country. These are not simply jobs. They are entry points into careers, and Government has a responsibility to ensure they remain accessible to Bermudians.”
The ministry said that the policy targets identified entry-level positions and it does not prevent businesses from accessing genuinely specialised expertise where required.
The government said it will continue to consider legitimate operational circumstances within the established immigration framework, while ensuring that genuine entry-level opportunities remain available to Bermudians.
“Bermuda can remain open to international business while ensuring Bermudians are positioned to participate in the opportunities that business creates. These objectives are not mutually exclusive,” the statement said, recalling the words of Hayward that “avenues for success must remain available for Bermudians, and employment opportunities such as these must remain accessible.”
The updated Closed and Restricted Job Categories took effect on 8 September 2026 and the government said it will continue to work with industry to protect opportunities for Bermudians while maintaining a competitive and successful international business sector.
