Bermuda’s economy is “stuck in neutral” and lagging behind its competitors in the region, the Shadow Minister of Finance has claimed.

Douglas De Couto said that despite figures presented last week by Jason Hayward, the Minister of Economy and Labour — which highlighted five years of economic growth — the island’s economy grew only 1 per cent in 2025 before inflation.

It was the lowest rate since Covid and the third straight year of slowing growth, Dr De Couto added.

He said: “Behind the optimistic spin, the report shows Bermuda’s economy stuck in neutral and lagging its competitors, thanks to the Progressive Labour Party government’s failed policies, poor leadership and dismal execution.”

The assertion was disputed by David Burt, the Premier and Minister of Finance, who said the island’s economy had recorded “five consecutive years of real growth, with 11 of 19 industries expanding in 2025”.

He added: “That growth includes construction, transportation and the local businesses that Bermudians own, work in and depend on every day.”

Last week, Mr Hayward said figures presented by the Department of Statistics in the 2025 Annual GDP Report indicated that Bermuda’s economy grew by 1 per cent in real terms to reach $7.2 billion, marking five consecutive years of economic growth.

While the economy recorded growth again, the rate of expansion slowed from 1.7 per cent in 2024 and 5 per cent in 2023.

Mr Hayward said: “Despite an increasingly complex global economic environment, characterised by geopolitical uncertainty, international trade pressures and changing economic conditions, Bermuda's economy has demonstrated resilience, stability and continued progress.

“The results reinforce the importance of maintaining a clear economic development strategy, strengthening our international competitiveness, supporting local businesses and ensuring that Bermudians have meaningful opportunities to participate in our country’s economic success.”

Mr Hayward also said that the island’s economy increased by 6.5 per cent in nominal terms in 2025, reaching approximately $9.85 billion, and exceeding the Ministry of Finance’s estimate of 2.5 to 3 per cent growth.

However, Dr De Couto said the 1 per cent “fell well short” of the projected estimate.

He added: “The minister claimed to beat that estimate only by comparing it with ‘nominal’ growth of 6.5 per cent, which includes inflation.

“These figures are how the public judges whether government policy is working, mistakes are worrying.

“It is bad enough that these reports arrive so late.”

Beyond Bermuda, Dr De Couto said that the island trailed the competition in the region.

He said that last year, the United States economy grew 2.2 per cent, Canada’s grew 1.7 per cent despite US tariffs, and that the Bahamas grew by 3.8 per cent.

In addition, he said the economy of the Cayman Islands grew 2.8 per cent in the first nine months of 2025.

Dr De Couto said that as the Government made plans to spend corporate income tax revenue, it should note that the international business sector grew only 0.8 per cent last year, its weakest in five years, while insurance rates “softened”.

The local economy, excluding international business and financial services, grew only 1.1 per cent, which he noted was also at “its weakest” in five years.

Dr De Couto said international business and financial services “drove half of all growth” while government spending drove another 17 per cent.

In other areas of the economy, he said the accommodation and food-service industry, which declined by 5.6 per cent or $15.9 million, was hit by late-season storms and fewer cruise calls.

Dr De Couto said the wholesale and retail sector, was “essentially flat, matching the quiet store fronts Bermudians see every day”.

The shadow finance minister added: “This report is another failing grade for the PLP’s economic strategy.

“Yet the Premier and his Cabinet are unwilling to acknowledge their lack of results and change course for the good of Bermuda and her people.”

Mr Burt said that the Government’s responsibility was “to build on that progress, expand opportunities for Bermudians and ensure that stronger economic performance delivers practical benefits for our people”.

He highlighted tax cuts for workers, strengthened social protections and investments in housing, healthcare and essential infrastructure.

He said: “Our preliminary financial results for 2025-26 project a surplus of $169.6 million, almost four times the original estimate.

“As we have done before, we will use better than expected results to return more money to taxpayers while strengthening Bermuda’s finances. In November, I will announce the next phase of tax reductions and relief for workers and families.”

The Premier said Dr De Couto had offered “no credible strategy to accelerate growth, expand social protections or deliver further relief” and called on the Opposition to explain “what it would actually do to take Bermuda forward”.

“This government has a clear approach: grow the economy, support local enterprise, invest in our people and reduce the burden on working families. When Bermuda does better, Bermudians must share in that success.

“We have delivered on that principle and we will continue to do so.”