Video: Minister Hayward Press Conference

[Updated] Minister of Economy and Labour Jason Hayward is holding a press conference this noon [Jan 14] to provide an update on Bermuda’s Economy. We will have additional coverage later on and in the meantime the live video is below.

Update: The live broadcast has concluded and the replay is below

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Update: Minister Hayward’s remarks:

Bermuda’s economic expansion eased in the second quarter 2025. During that second quarter, the economy abated by an estimated 1.2 per cent year-over-year after adjusting for inflation.

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.

In contrast, Gross Domestic Product by Expenditure in current prices increased by 0.7 per cent during the year-over-year.

Consumer Spending

Consumer spending in the second quarter was recorded at $841 million. Household Consumption increased 1.0 per cent year-over-year.

House Consumption of Services increased by 0.1 per cent, reflecting higher expenditure on personal care services and air transport services.

Spending on non-durable and semi-durable goods increased by 4.1 per cent, due largely to increased spending on accompanied personal goods, fuel and power and non-alcholic beverages.

Employment Income

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%]
• International Business [8.2%]
• Construction [5.5%]
• Hotels & Restaurants [4.8%]
• Business Services [2.4%]

While contractions were recorded in Wholesale and Retail Trade [-0.1%] and Transport and Communications sectors [-3.9%].

Tourism

The island hosted 67,685 air visitors during the second quarter of 2025, up from 67,121 in the second quarter of 2024.

Government Expenditure

The Government’s consumption decreased by 3.8 per cent during the quarter, as declines in expenditure of goods and services more than offset increased spending on wages and salaries.

Investments rose 5.1per cent to $222 million. Gross Capital Formation of machinery and equipment and construction both increased 5.1per cent.

Investment in machinery and equipment increased due to higher imports of agricultural and industrial machinery.

The External Balance of Goods and Services

Bermuda’s Trade Balance declined by 7.1 per cent to $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. Exports of Goods and Services decreased by 0.9 per cent during the quarter, while Imports of Goods and Services rose 4.8 per cent.

Business Registrations

Bermuda’s business ecosystem remains robust, and in terms of total local business registrations, there were 32 new local businesses registered during the second quarter of 2025. This brought the local business register to 4,048, up 2.3% over the total local business registered in Q2 of 2024.

Conclusion

The Government 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.

For more information, please review the Quarter 2, 2025 Quarterly GDP by Expenditure publication available at the Department of Statistics online at gov.bm.

Thank you.

The Quarterly GDP by Expenditure Q2 2025 follows below [PDF here]:

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