Island records ‘robust’ economic growth in Q3 2025
A strong trade balance propelled “robust” expansion of the island’s economy during the third quarter of last year, the Minister of Economy and Labour said yesterday.
Jason Hayward reported that figures showed the expansion was also driven by increased investment as well as strong consumer and government spending.
It came as the Government is fine-tuning work on a fintech strategy as well as a national entrepreneurship strategy that the minister said will “further support diversified and inclusive economic growth”.
Mr Hayward said figures in the Third Quarter GDP 2025 Report, released by the Department of Statistics, demonstrated that the economy grew by an estimated 9.9 per cent year-over-year after adjusting for inflation.
He noted it was the largest quarterly growth experienced by the economy since the 10.2 per cent recorded in the second quarter of 2021.
Mr Hayward added that the figures “tell a powerful story about Bermuda’s resilience, economic acceleration and the collective confidence in Bermuda”.
He said: “These results are more than numbers, they reflect the strength of our people, the stability of our institutions and the demonstration of an economy that continues to outperform expectations.”
Mr Hayward said the country’s trade balance rose by 32.8 per cent to $473.4 million as growth in the receipts from the export of goods and services expanded, while payments for goods and services contracted.
He reported that export of goods and services increased by 8.7 per cent as imports for the two dropped by 8.3 per cent — driven by lower fuel imports.
During the quarter, the minister said 42 new local businesses were registered in the domestic economy.
The number of new businesses registered on the island abated year-over-year, taking the complete business register to 3,830.
Mr Hayward added that consumer spending in the third quarter increased by 1.1 per cent to $862.9 million, compared to the same period a year earlier.
Consumption of services increased by 1 per cent, which the minister said reflected higher expenditure on air transport, catering and personal care services.
Mr Hayward said spending on durable and non-durable goods rose by 1.6 per cent, influenced primarily by spending on fuel, power, food and non-alcoholic beverages.
He said employment in the third quarter was up 4.5 per cent compared with 2024 levels.
Increases were logged of 2.7 per cent in international business, 6.6 per cent for hotels and restaurants, and 7.6 for business services.
Other figures showed growth by 2.2 per cent for wholesale and retail, 12.6 per cent for public administration and defence, and 12.7 per cent in the construction sector.
In addition, gross capital formation grew by 11.6 per cent to $207.3 million and Mr Hayward said investment related to construction rose 5.8 per cent while investment in machinery and equipment increased by 17 per cent owing to higher imports of agricultural and industrial machinery.
The minister noted that consumption by the Government increased by 5.4 per cent during the quarter, with higher expenditure on wages and salaries.
“Overall the third quarter performance reflects encouraging momentum across key economic indicators including rising employment remuneration, increased government spending, robust investment activity and a strengthened trade balance,” he added.
Mr Hayward said the “positive trends” affirm the island’s growth trajectory.
“The Government will continue to execute the strategic initiatives outlined in the Economic Development Strategy to ensure that Bermuda experiences sustainable growth and development.”
Work is progressing on a fintech strategy which will be released shortly, along with the national entrepreneurship strategy, according to Jason Hayward.
Asked when digital finance will truly materialise as the third pillar of the island’s economy as was previously suggested by the Government, the Economy and Labour Minister said it fell under the fintech strategy which he said will be introduced with targeted gaps and stakeholder engagement over a two-year period.
“I think what you’re going to see is growing increase of digital finance within our economy,” he said. “If you look worldwide, you can’t have an economy of the future without an increase in technology.
“AI is going to become more prevalent within our society as well as ensuring that we have a government that is delivering the expectations of the people.
“That means we have to deliver services in a more efficient way, the only way we can do so is if we integrate greater levels of technology in the way in which we provide services to the people of Bermuda.”
• To see the GDP report and minister’s remarks, see Related Media
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