HAMILTON, Bermuda, CMC – The Bermuda government says the island’s real gross domestic product (GDP) is estimated to have increased between 2.5 to three per cent last year, reflecting solid solid performance in the international business sector and further recovery in tourism, supported by strong job growth, rising employment income, consumer spending, and foreign currency earnings.
Premier David Burt said that the international business sector continues to be the primary driver of economic growth and that during the first three quarters of 2025, a total of 398 new international companies and partnerships were registered.
“For the year, the sector employed 5,112 persons, representing an increase of 72 jobs, or 1.4 per cent, compared with the previous year. Total employment income within the sector rose by a further 5.5 per cent, or US$76.9 million, contributing significantly to overall growth in national income.”
Burt said that Bermuda’s tourism sector demonstrated resilience amid a challenging environment in 2025.
He said that although air and cruise visitor arrivals declined, total visitor spending across air and cruise increased by 3.5 per cent to US$550 million. Hotel performance remained resilient, and superyacht tourism was the standout performer, with arrivals rising 50 per cent and associated visitor spending increasing 64 per cent year-on-year.
Tourism activity also continued to support employment growth in the accommodation and food services sector, with 64 additional jobs representing a 1.7 per cent increase.
Burt said that employment throughout the economy has strengthened during 2025.
He said the total number of filled positions has risen by 279 posts, representing a 0.8 per cent increase, which marks the fourth successive year of employment expansion.
Growth has been concentrated in public administration, international business, and accommodation and food services, with these three sectors collectively accounting for over half of all new positions.
Conversely, the most significant contractions were registered in financial and insurance activities, information and communication, and real estate activities.
Premier Burt said that unemployment has continued its downward trajectory, standing at 1.4 per cent in November 2024, well below the 2.8 per cent recorded a year earlier and representing the lowest rate since 1970.
He said among Bermudians, the unemployment rate also fell from 3.3 to 1.3 per cent.
“Whilst this development is certainly welcome, the government is mindful that a constrained labour market may generate inflationary wage pressures across the broader economy. It is therefore imperative that Government policy facilitates an adequate labour supply to underpin sustained economic expansion.”
Burt said that during the first nine months of 2025, employment income, a principal driver of consumer activity, expanded by 5.8 per cent or US$196.1 million, to US$3.57 billion. Aggregate retail sector turnover stood at US$948 million over the first three quarters of 2025, up 1.5 per cent from the corresponding period in 2024. Additionally, personal consumer spending rose by 2.4 per cent to a total of four billion US dollars throughout 2024.
Burt said that, although the value of new projects fell by 60 per cent to US$45.1 million over the first nine months, the total estimated value of construction activity undertaken grew from US$70.1 million to US$112.8 million, an increase of US$42.7 million, or 60 per cent.
Burt said that this expansion was driven by the office, retail, and warehousing categories, which increased by US$20 million.
The premier said that Bermuda’s annual inflation rate was 2.2 per cent in September 2025, remaining below major economies such as the United States at 3 per cent, the United Kingdom at 3.8 per cent, and Canada at 2.3 per cent.
Burt also disclosed that Bermuda’s external position remains strong. In the first nine months of 2025, the current account surplus widened to US$1.52 billion, up from US$1.33 billion over the same period in 2024, representing 21.5 per cent of GDP.
“This expansion reflects a solid performance in financial services exports, employee compensation, and investment incomes. Foreign currency earnings from the International Business sector reached US$2.29 billion, a 4.5 percent increase year-over-year, while tourism foreign exchange earnings rose to US$436.7 million, up 1.4 percent,” he said.
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