Bermuda’s Economy Continues to Thrive

  • Bermuda’s economy has demonstrated notable growth and resilience. During the first quarter of 2024 (Q1 2024), Bermuda’s economy grew by an estimated 7.1%, adjusted for inflation, signifying strong expansion compared to the previous year. This economic growth resulted from increased household expenditure and a rise in the export of goods and services.
  • Evidenced by both real and nominal GDP figures, such growth highlights the economy’s resilience and the effectiveness of supportive government policies and prevailing market conditions, according to Bermuda’s Minister of Economy and Labour, Jason Hayward.
  • Consumer spending in Q1 2024 increased 1.2% year-over-year to US$793.4Mn. This increase reflects modest yet positive growth in the total amount of money consumers spent on goods and services during the quarter. The increase in consumer spending in Bermuda also demonstrates a positive economic environment, with growth in both service consumption and investment in durable goods likely due to higher employment incomes.
  • Of note, employment income rose by 11% compared to 2023 levels. Notable increases in employment income were observed across various industries, including International Business (17.1%), Hotels & Restaurants (6.7%), Banking Insurance & Real Estate (8.2%), Public Administration & Defense (7.4%), and Transport and Communication (14.9%).
  • Tourism, which is vital to Bermuda’s economy, also showed growth in the first quarter of 2024. For Q1 2024, Bermuda welcomed 25,761 air visitors, an increase from 24,661 in 2023. Visitor’s estimated expenditure also rose, reaching US$52.6Mn, up from US$48.7Mn the previous year.
  • Overall, economic growth in Bermuda will continue to be driven by infrastructure projects, the construction sector, and its position as a global leader in the insurance and reinsurance sector along with steady tourism growth. Furthermore, inflation rates in the sovereign remain somewhat contained and should provide some tailwinds for personal consumption and by extension economic growth. Bermuda’s economy is on track to grow about 3.0% in 2024 before slowing to 1% thereafter, somewhat in line with pre-pandemic growth performance, following an estimated increase of 4.0% in 2023 and 6.4% in 2022 (S&P).

(Sources: BerNews, S&P & NCBCM Research)