Bermuda’s Economy Expanded During First Quarter of 2026

• Bermuda’s economy expanded by an estimated 0.5% in the first quarter of 2026 (Q1 2026), adjusted for inflation, extending the momentum recorded in 2025. The growth was primarily supported by stronger household expenditure and construction activity.
• Household spending remained a key driver of growth, increasing 2.6% year-over-year (YoY) to US$827.7Mn. Spending on services rose 2.1%, supported by higher expenditure on catering, accommodation and postal services, while durable goods spending increased 9.7%, driven by purchases of information-processing equipment, motorcycles, and new and used cars. Spending also increased on personal goods, motor fuel, food and non-alcoholic beverages.
• The stronger economic activity was accompanied by broad-based gains in employment income, which rose 6.3% YoY in Q1. Construction recorded a 12% increase, followed by public administration and defence at 11.6% and banking, insurance and real estate at 6%. Employment income also increased in international business, hotels and restaurants, and wholesale and retail, pointing to continued strength across several sectors.
• Construction and tourism provided additional support to growth. Construction investment increased 8.1%, contributing to a 0.6% rise in gross capital formation to US$198.2Mn, although investment in machinery and equipment declined 6.2%. Meanwhile, air visitor arrivals rose to 29,426 from 27,649 a year earlier, with estimated visitor spending increasing to US$55.3Mn from US$48.5Mn (+14.0%).
• Other indicators were mixed, but overall activity remained resilient. Government consumption fell 5.6% to US$190.3Mn, while the trade balance declined marginally by 0.1% to US$831.0Mn as both imports and exports of goods and services decreased.
• Bermuda's exceptional wealth is underpinned by its globally competitive insurance and reinsurance sector, alongside a steady but smaller tourism industry. S&P Global Ratings estimates that Bermuda’s GDP per capita will remain among the highest globally, reaching approximately US$141,000 in 2026, supported by the territory’s role as a leading global insurance and reinsurance hub. Furthermore, the agency expects average real GDP growth of approximately 1.6% over the next four years, reflecting normalisation following the stronger post-pandemic recovery period.

(Sources: Caribbean Today & S&P Global Ratings)