Good day to members of the media and the listening public.
Today I am pleased to report that Bermuda's economy continued its steady progress. Building on good momentum and strong growth in 2025, in the first quarter of 2026, Bermuda’s economy expanded by an estimated 0.5 per cent, adjusted for inflation, signifying continued economic expansion. This economic growth resulted from increased household expenditure and construction activity.
In current prices, 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.
Consumer Spending
Consumer spending in the first quarter increased 2.6 per cent year-over-year to $827.7 million. This increase reflects growth in the total amount of money consumers spent on goods and services during the quarter.
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.
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.
Employment Income
In the first quarter of 2026, employment income rose by 6.3 per cent compared to 2025 levels. Notable increases in employment income were observed across most industries:
- Construction (12.0%)
- Public Administration & Defence (11.6%)
- Banking, Insurance & Real Estate (6.0%)
- Hotels & Restaurants (4.5)
- International Business (5.3%)
- Wholesale & Retail (3.3%)
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 & Communications.
Tourism
Bermuda welcomed 29,426 air visitors in the first quarter of 2026, an increase from 27,649 in the same period of 2025. The estimated expenditure by these visitors also rose, reaching $55.3 million, up from $48.5 million reported in the first quarter of 2025.
Government Expenditure
Government consumption decreased by 5.6 per cent to $190.3 million, reflecting lower expenditure on goods and services.
Investment
Gross Capital Formation increased 0.6 per cent to $198.2 million. 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 equipment.
The External Balance of Goods and Services
Bermuda’s Trade Balance abated 0.1 per cent to $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.
Business Registrations
There were 58 new local businesses registered in Bermuda during the first quarter of 2026. Total local business registration decreased year-over-year, bringing the complete business register to 3,660.
Conclusion
In conclusion, 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.
For more information, please see the Quarter 1, 2026 Quarterly GDP by Expenditure and the Quarter 1, 2026 Balance of Payments & International Investment Position publications available online at the Department of Statistics.
Thank you.
