HAMILTON, Bermuda, CMC – The Bermuda economy declined by 1.2 per cent during the last quarter of last year, according to figures released by the Ministry of Economy and Labour.
It said that the economic contraction was a direct result of a decline in Bermuda’s trade balance due to an increase in imports and a reduction in Government spending, and that, in contrast, gross domestic product (GDP) by expenditure in current prices increased by 0.7 per cent during the year-over-year.
According to figures, consumer spending in the second quarter totaled US$841 million, with household consumption rising 1% year over year.
House consumption of services increased by 0.1 per cent, reflecting higher expenditure on personal care services and air transport services, while spending on non-durable and semi-durable goods increased by 4.1 per cent, due mainly to increased spending on accompanied personal goods, fuel and power, and non-alcoholic beverages.
The figures show that employment income in the second quarter was 6.5 per cent above 2024 levels. Employment income in the following industries all increased in the second quarter of 2025:
Public Administration (19.9 per cent), International Business (8.2 per cent), Construction (5.5 per cent), Hotels & Restaurants (4.8 per cent), and Business Services (2.4 per cent), while contractions were recorded in Wholesale and Retail Trade (-0.1 per cent) and Transport and Communications sectors (-3.9 per cent).
The Ministry of Economy and Labour said that the British Overseas Territory hosted 67,685 air visitors during the second quarter of 2025, up from 67,121 in the second quarter of 2024.
It said the Government’s consumption decreased by 3.8 per cent during the quarter, as declines in expenditure on goods and services more than offset increased spending on wages and salaries.
Investments rose 5.1 per cent to US$222 million, while gross capital formation in machinery and equipment and construction both increased 5.1 per cent. Investment in machinery and equipment increased due to higher imports of agricultural and industrial machinery.
The data shows that Bermuda’s trade balance declined by 7.1 per cent to US$417.9 million as growth in payments for the imports of goods and services outpaced the growth of receipts for the export of goods and services, which decreased by 0.9 per cent during the quarter, while imports of goods and services rose 4.8 per cent.
The ministry said that Bermuda’s business ecosystem remains robust and that, in total, 32 new local businesses were registered during the second quarter of 2025.
This brought the local business register to 4,048, up 2.3 per cent from the total registered in the second quarter of 2024.
The Government said it continues to facilitate the expansion and sustainability of Bermuda’s economy by creating a business environment that allows businesses to thrive.
“The Government will continue to execute the strategic initiatives outlined in Bermuda’s Economic Development Strategy to ensure that Bermuda experiences sustainable economic growth and development,’ the ministry added.
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