Video: Minister Hayward Holds Press Conference
[Updated] Minister of Economy and Labour Jason Hayward is holding a press conference this morning [June 10] 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 3.10pm: Minister Hayward’s remarks:
Good day to members of the media and the listening public.
Today, I am pleased to report that Bermuda’s economy continues to demonstrate resilience, strength, and steady progress. The latest economic data confirms that our economy expanded for a second consecutive quarter in 2025. Economic growth is not simply a statistic, it translates into higher incomes for workers, increased business activity, and greater investment in our communities. The enhanced government revenues also help fund essential public services. The fourth quarter results provide further evidence that Bermuda is moving in the right direction and that the foundations of our economy remain strong despite global economic uncertainty.
Q4 2025 Economic Performance
The economy continued to expand in the fourth quarter of 2025. After adjusting for inflation, the GDP in constant prices increased by 0.1%, capping off the year with two consecutive quarters of economic expansion.
The quarterly GDP estimates indicate that the economy has expanded by 3.2% in nominal terms in the 4th Quarter of 2025.
Real GDP in the first quarter of 2025 was revised upward from 0.9% to 1.5%, in the second quarter of 2025 real GDP has been revised upward from a 1.0% decrease to a 0.2% decrease, and third-quarter GDP has been revised upward from a reported 9.9% increase to a 11.8% increase.
Consumer Spending
Consumer spending in the fourth quarter increased 0.4 per cent year-over-year to $875.9 million. Consumption of Services, which accounts for 71.5% of total consumer spending, increased 1.2 per cent year-over-year, reflected in higher services related to personal care and transportation.
Conversely, the spending on non-durable goods abated 0.7% as a result of lower spending for clothing material, clothing and accessories. Spending on durable goods also fell by 3.5 per cent due largely to a decline in expenditure on information processing equipment, and furniture and furnishings.
Employment Income
Employment income in the fourth quarter was 6.5% above 2024 levels. The vast majority of major industries reported growth in employee remuneration. The increase in employment income by industry reveals the following performance:
- Public Administration increased 12.2%
- Banking, Insurance and Real Estate increased 7.3%
- International Business increased 6.1%
- Construction increased 5.7%
- Hotels and Restaurants increased 5.3%
- Business Services increased 4.5%
- Wholesale and Retail increased 3.8%
- Transport and Communication decreased 1.7%
The increase in employment income across major industries in Bermuda not only boosts the financial well-being of individuals through enhanced wages but also stimulates consumer spending, drives economic growth, and aids the overall prosperity of Bermuda.
Government Expenditure
Consumption by the Government declined 3.8 per cent during the quarter, with reduced expenditure on professional services and insurance.
Investment
With respect to investment, Gross Capital Formation increased 5.3% to $201.2 million. Investment related to construction expanded 3.3%; while investment in machinery and equipment increased by 7.1% due to higher imports of ferryboats, refrigeration machinery and agricultural machinery.
The External Balance of Goods and Services
The 2025 fourth Quarter Balance of Payments reported that Bermuda’s trade surplus with the rest of the world was recorded at $609 million, representing a $206 million increase year-over-year.
Services transactions realised a surplus of $171 million, expanding by $7 million from the previous year. The deficit on the goods account widened by $33 million to $331 million. Additionally, Bermuda’s primary income account surplus expanded by $209 million year-over-year, climbing to $830 million in the fourth quarter.
Business Registrations
The total local business registration declined year-over-year, bringing the complete business register to 3,673. There were 38 new local businesses registered in Bermuda during the fourth quarter of 2025.
In conclusion, the economic results are both positive and promising, highlighting the Bermuda’s economic resilience and strength. Notwithstanding the successes, the Government will continue to facilitate Bermuda’s economic expansion by creating a business ecosystem that allows businesses to thrive. The focus over the coming months will be on the execution of national entrepreneurship and fintech strategies, progressing cooperative legislation and the development of a digital economy strategy.
For more information, please review the Quarter 4, 2025 Quarterly GDP by Expenditure publication available at the Department of Statistics online at gov.bm.
The Quarterly GDP by Expenditure Q4 2025 follows below [PDF here]:
“The latest economic data confirms that our economy expanded for a second consecutive quarter in 2025.”
Is that the same economic data that shows our retail price inflation as being lower than that of the U.S., the U.K., and Canada consistently for the last 5 or 6 years?
Is that the same economic data that shows what most economists would consider an economic impossibility?
Maybe Hayward should go shopping with folks who are struggling money wise to get a clearer picture on how worse off we are. Grocery prices, clothing rents to name 3
“how worse off we are”
Sorry, Steve. According to our Premier and Minister of Finance, the PLP Government statistics show that we are better off than the U.S., the U.K., and Canada. Our rate of retail price inflation has been consistently lower than that of the U.S., the U.K., and Canada since 2020.
According to our Premier and Minister of Finance the price of consumer goods fell once those goods were loaded onto a container ship headed away from U.S., the U.K., or Canada for Bermuda. That is the only conceivable way that our retail price inflation rate can be consistent lower than those countries (the U.S., the U.K., and Canada) from which we buy 90% of our consumer goods (according to PLP Government statistics).
Ahhhhhh….. I wondered why so many Americans, Canadians and Brits were coming here shopping up all our stores and brining suitcases full of stuff home with them. Makes sense now, so much cheaper to shop here with our low inflation.