The economy expanded for the second consecutive quarter in the final three months of 2025, Jason Hayward, the Minister of Economy and Labour, announced this morning.

He said fourth-quarter figures showed that the local economy continuing to demonstrate “resilience, strength and steady progress”.

However, Mr Hayward noted that while employment income was up 6.5 per cent on 2024 levels, the number of businesses registered in Bermuda fell by 371 in the same period.

Mr Hayward called the Q4 results further evidence of the economy moving in the right direction despite global uncertainty.

He added: “After adjusting for inflation, the Gross Domestic Product in constant prices increased by 0.1 per cent, capping off the year with two consecutive quarters of economic expansion.

“The quarterly GDP estimates indicate that Bermuda’s economy has expanded by 3.2 per cent in nominal terms in the fourth quarter in 2025.

“Real GDP in the first quarter was revised upwards to 0.9 per cent to 1.5 per cent.”

He said real GDP for the second quarter of 2025 was also revised upwards from a 1 per cent decrease to a drop of 0.2 per cent, while figures for the third quarter went from a reported 9.9 per cent increase to 11.8 per cent.

Mr Hayward said Q4 consumer spending increased 0.4 per cent year-over-year to $875.9 million.

He added: “Consumption of services, which accounts for 71.5 per cent of total economic spending, increased by 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 by 0.7 per cent as a result of lower spending on 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, furniture and furnishing.”

Employment income in the fourth quarter was up 6.5 per cent from 2024 levels, with most major industries reporting growth.

The total number of business registrations declined year-over-year, bringing the complete business register to 3,673. In the fourth quarter of 2024, the figure stood at 4,044.

Mr Hayward said the decline was not particularly concerning, saying it was usual for the number to “fluctuate” between years.

There were 38 new local business registrations during the fourth quarter of 2025.

Government consumption declined 3.8 per cent during the quarter, with reduced expenditure on professional services and insurance.

Turning to investments, Mr Hayward said gross capital formation, investment in the economy’s physical and capital assets, was up 5.3 per cent to $201.2 million.

Investment related to construction expanded 3.3 per cent while investment in machinery increased by 7.1 per cent owing to ferry boat imports, refrigeration machinery and agricultural machinery.

The 2025 fourth-quarter balance of payments, a record of the country’s monetary transactions, showed Bermuda’s trade surplus with the rest of the world at $609 million, representing a $206 million increase year-over-year.

Mr Hayward added: “In conclusion, the economic results are both positive and promising, highlighting Bermuda’s economic resilience and strength.”

He added: “The focus over the coming months will be on the execution of the National Entrepreneurship Strategy and Fintech Strategy as well as progressing co-operative legislation and the development of a digital economy strategy.”

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Hayward on Economy.pdf

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GDP Q4 2025.pdf

• For the GDP figures and to read the minister’s statement in full, see Related Media