Bermuda economy grows 0.5% in first quarter of 2026
Key Points(5)
- Bermuda’s economy grew by an estimated 0.5% in the first quarter of 2026, driven by increased household spending and construction activity, according to figures released by the government.
- The growth, adjusted for inflation, continued the economic momentum recorded in 2025.
- In current prices, gross domestic product increased by 2.3% during the quarter.
- Consumer spending rose 2.6% year over year to $827.7 million, with increased expenditure on both goods and services.
- Spending on services increased by 2.1%, reflecting higher expenditure on catering, accommodation and postal services.
Bermuda’s economy grew by an estimated 0.5% in the first quarter of 2026, driven by increased household spending and construction activity, according to figures released by the government.
The growth, adjusted for inflation, continued the economic momentum recorded in 2025. In current prices, gross domestic product increased by 2.3% during the quarter.
Consumer spending rose 2.6% year over year to $827.7 million, with increased expenditure on both goods and services.
Spending on services increased by 2.1%, reflecting higher expenditure on catering, accommodation and postal services. Spending on durable goods jumped 9.7%, supported by purchases of information processing equipment, motorcycles and new and used vehicles.
Employment income also recorded significant growth, rising 6.3% compared with the first quarter of 2025.
Construction recorded the largest increase in employment income at 12%, followed by public administration and defense at 11.6%. Employment income rose 6% in banking, insurance and real estate; 5.3% in international business; 4.5% in hotels and restaurants; and 3.3% in wholesale and retail.
Business services and transport and communications were among the sectors where employment income declined.
Tourism indicators also improved during the quarter, with Bermuda welcoming 29,426 air visitors, up from 27,649 during the same period last year.
Estimated spending by air visitors climbed to $55.3 million, compared with $48.5 million in the first quarter of 2025.
Investment remained relatively stable, with gross capital formation increasing 0.6% to $198.2 million. Construction investment grew by 8.1%, while investment in machinery and equipment fell 6.2% amid lower imports of industrial machinery, transportation equipment and medical machinery and equipment.
Government consumption, meanwhile, decreased 5.6% to $190.3 million, reflecting lower spending on goods and services.
Bermuda's trade balance declined marginally by 0.1% to $831 million as both imports and exports of goods and services decreased. Exports fell 0.1%, while imports also declined by 0.1%.
The government also reported that 58 new local businesses were registered during the first three months of the year. Overall local business registrations declined year over year, with the total business register standing at 3,660.
The government said the first-quarter results indicate that Bermuda's economy continues to demonstrate resilience and forward momentum, while reaffirming its commitment to creating an environment that supports business growth and economic sustainability.
