Construction, household spending spur 2026 growth
Statistics for the start of 2026 show Bermuda’s economy “demonstrating resilience and adapting despite continued global uncertainty”, residents heard today.
Jason Hayward, the Minister of Economy and Labour, said first-quarter figures for gross domestic product and economic performance showed an estimated 0.5 per cent growth in the island’s economy when adjusted for inflation.
He attributed the growth to “increased household expenditure and construction activity”.
Out of an overall rise of 6.3 per cent in employment income compared with 2025 levels, construction came top at 12 per cent. Public administration and defence stood at 11.6 per cent, while banking, insurance and real estate showed 6 per cent.
There was a 4.5 per cent income rise in hotels and restaurants, 5.3 per cent in international business and 3.3 per cent in wholesale and retail. Employment income declined in business services and in transport and communications.
Mr Hayward said the strong figures for income rise in construction were in keeping with figures observed over the past few quarters.
He added: “I think it’s going to progress — we are also seeing widespread public service housing development and we’re going to see those translating to our numbers as well.”
The minister also cited the coming renovation of the Elbow Beach resort.
“There is still high demand as it pertains to commercial construction development as well as residential,” he added.
Although retail income lagged at 3.3 per cent, Mr Hayward said the sector “remains robust”, with no sign of economic contraction.
Overall, there were 58 new businesses registered in the first three months of the year — although total business registration decreased year-over-year. It brought the island’s business register to 3,660.
The minister defended his decision this month to add entry-level positions in insurance and reinsurance to the island’s closed and restricted job categories.
Three industry sources subsequently told The Royal Gazette that the move was unnecessary.
The Government acknowledged “concerns” after updates this month to the closed and restricted job categories adding “certain entry-level positions within Bermuda’s insurance and reinsurance sector”.
A spokesman said: “The entry-level positions now included in the closed job category are the types of roles through which many Bermudians have built successful careers in insurance, reinsurance, claims, underwriting and broking.
“Young Bermudians should have opportunities to begin their careers in these industries in their own country.”
He added: “The policy targets identified entry-level positions. It does not prevent businesses from accessing genuinely specialised expertise where required.
“The Government will continue to consider legitimate operational circumstances within the established immigration framework, while ensuring that genuine entry-level opportunities remain available to Bermudians.
“Bermuda can remain open to international business while ensuring Bermudians are positioned to participate in the opportunities that business creates.
“These objectives are not mutually exclusive.”
The move came into effect on September 8.
However, Mr Hayward said that after consulting with the sector in July, “what I observed from an immigration standpoint was companies seeking to bring in workers within those categories”.
He explained: “There was not a policy that actually restricted companies from doing that.
“I wanted to be ahead of the trend, so it is not a continual occurrence of companies trying to bring in employees in entry-level positions.
“We want to make it abundantly clear that those positions should be reserved for Bermudians.”
Mr Hayward said a shortfall of Bermudian workers at entry level was not a realistic scenario for the industry.
Elsewhere, the economic statistics showed GDP up 2.3 per cent in the first quarter. There was a 0.6 per cent rise in gross capital formation, to $198.2 million.
“Construction investment continued its strong performance, increasing by 8.1 per cent,” Mr Hayward said.
“Investment in machinery and equipment saw a decrease of 6.2 per cent, driven by lower imports of industrial machinery, transportation equipment and medical machinery and equipment.”
Consumer spending rose 2.6 per cent year-over-year, to $827.7 million, while consumption of services increased 2.1 per cent, buoyed by higher spending in catering, accommodation and postal services.
Mr Hayward added: “Spending on durable goods rose by 9.7 per cent, with notable increases in purchases of information-processing equipment, motorcycles and new and used cars.
“At the same time, spending rose 1.4 per cent, in large part due to expenditures on accompanied personal goods, motor fuels, food and non-alcoholic beverages.”
Tourism was up for the quarter compared with 2025. There were 29,426 air visitors, up from 27,649 last year, with estimated spending at $55.3 million over $48.5 million for the first quarter of 2025.
The island’s trade balance fell 0.1 per cent to $831 million, attributed to a drop in both payments for imports of goods and services, and receipts from exports of goods and services.
• For quarterly figures on GDP and balance of payments, see Related Media
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