Moody’s affirmation of Bermuda’s A2 credit rating this month is evidence of a strengthening economy, according to David Burt, the Premier and Minister of Finance.

On July 11, the credit ratings agency gave Bermuda a stable outlook.

Today, Mr Burt said it reflected the progress the island has made and the promises that the Progressive Labour Party has kept.

“Bermuda’s economy is strengthening, and the results of our economic strategy are clear,” said Mr Burt, adding that the PLP would continue to deliver relief for workers, invest in the future and maintain the fiscal discipline that ensures long-term stability for the island.

Moody’s said Bermuda’s credit profile reflected strong institutional framework, high per capita income and large recurring current account surpluses.

“These strengths support the sovereign’s capacity to absorb potential shocks, balancing the challenges posed by its small, undiversified economy and the long-term impact of demographic trends on growth,” Moody’s said. “High wealth levels balance relatively low gross domestic product growth of around 1.5 per cent in real GDP terms over the next two to three years.”

The ratings agency said Bermuda is on track to achieve budget surpluses this year, supported by a strong economic rebound and implementation of tax reform.

The review also praised the Government’s efforts to boost investment and reduce debt levels, stating: “On May 2, the FY2025-26 Budget Statement was presented to Parliament, highlighting the Government’s commitment to fiscal responsibility. A projected budget surplus of $43.3 million, more than double the previous year’s surplus, is underpinned by strong GDP growth, increased revenue from the new corporate income tax and disciplined expenditure management.”

Moody’s said these developments supported its projection that Bermuda’s financial balance will reach a surplus of about 0.5 per cent of GDP this year.

“Importantly, this fiscal improvement is expected to translate into a steady decline in the debt burden, which is projected to fall from 38.4 per cent of GDP in 2023 to 35 per cent in 2025 and further to 31.2 per cent by 2026.”

The agency said these trends reflected a strengthening fiscal position that enhances Bermuda’s capacity to absorb future shocks and support long-term growth.

Mr Burt added that in 2025, the island’s sovereign creditworthiness was reaffirmed by leading global agencies, and that together, these ratings validated Bermuda’s wise economic stewardship and sound management.