Bermuda Economy Grows 0.5% in First Quarter

Bermuda’s economy grew by an estimated 0.5% in the first quarter of 2026, according to government figures. The growth, adjusted for inflation, was supported by higher household spending and construction activity.

The increase continued the economic momentum recorded in 2025. At current prices, Bermuda’s gross domestic product rose by 2.3% during the quarter.

Household spending also increased. Consumer spending rose 2.6% year over year to $827.7 million. Spending grew across both goods and services.

Spending on services increased by 2.1%. The rise reflected higher spending on catering, accommodation and postal services. Meanwhile, spending on durable goods jumped 9.7%. Purchases included information processing equipment, motorcycles, and new and used vehicles.

Employment income also recorded strong growth in Bermuda. It increased 6.3% compared with the first quarter of 2025.

Construction recorded the largest increase at 12%. Public administration and defense followed with an 11.6% rise. Employment income also increased in banking, insurance and real estate, international business, hotels and restaurants, and wholesale and retail.

However, business services and transport and communications recorded declines in employment income.

Tourism and Investment

Tourism indicators improved during the quarter. Bermuda welcomed 29,426 air visitors, compared with 27,649 during the same period in 2025.

Estimated spending by air visitors also rose. Visitors spent $55.3 million, up from $48.5 million in the first quarter of 2025.

Investment remained relatively stable. Gross capital formation increased 0.6% to $198.2 million. Construction investment grew by 8.1%. However, investment in machinery and equipment fell 6.2%.

Government consumption declined 5.6% to $190.3 million. The decrease reflected lower spending on goods and services.

Bermuda’s trade balance declined slightly by 0.1% to $831 million. Both imports and exports of goods and services fell by 0.1%.

The government also reported 58 new local business registrations during the first three months of 2026. Overall registrations declined year over year, while the total business register stood at 3,660.

The government said the first-quarter results show continued resilience and forward momentum. It also reaffirmed its commitment to supporting business growth and economic sustainability in Bermuda.