Chamber report seeks urgent solutions on economy
A worrying report from the economic committee of the Bermuda Chamber of Commerce raises far more questions than answers and shares concerns about the state of the economy and its future.
Entitled “Head or Tails – A Coin Has Two Sides” March 2025, the report investigates the need for urgent solutions when dynamic forces, including immigration policies and recent population emigration, has the island ageing at a faster rate than most Organisation for Economic Co-operation and Development countries.
Using conventional and non-conventional data sources, the report estimates a substantially lower resident population than previously stated – somewhere between 54,651 and 56,683 as of October 2024.
That is a 10 per cent decrease from the 2016 Census figure of 63,779.
In employment, the analysts forecast: “Around 25.3 per cent of the population is 65 years old and over, and this is to increase to 30.3 per cent in 2030, 33.9 per cent in 2035 and 37.2 per cent in 2040, with an old-age dependency ratio (the ratio of those 65+ to the working-age population) of 0.75 in 2040, versus 2024 of 0.42 and the 2016 rate of 0.26.”
That is the case for more investment in infrastructure and health options beyond simply new daycare facilities, together with a sound immigration policy at the forefront of any agenda.
The report follows alarm raised a year ago at the chamber’s annual Budget Breakfast followed by its deep dive into economic statistics that showed the 2023 job count remained lower than pre-pandemic numbers.
The chamber also commented on inflation reporting, noting average food inflation in the US was up 28 per cent from December 2019 through to October 2024, and up in Bermuda by 24.4 per cent.
The report called for legislative tabling of the long-awaited Landlord Tenant Act as a pressing matter, although conceding there had not yet even been any consultation over a public draft.
“Rent control covers 55 per cent of residential ARVs [annual rental value] and coupled with minimal development, it is time for the concept of rent control to be modernised, which should see that a portion of units within the rent control parameters can pass on a specified increase each year under certain conditions.
“We appreciate this is not a popular option but it is viewed as one means to make the overall rental market more attractive for investors and landlords alike, to help increase supply.”
But there is concern with the reporting of sound economic growth through gross domestic product figures, which showed total household and government expenditure remained nearly flat (0.9 per cent), capital formation dropped sharply (19 per cent) and imports of goods and services were flat.
“Meanwhile, exports of goods and services – driven primarily by international business and tourism – grew by 17 per cent.
“The net impact of exports minus imports surged by 37 per cent, fuelling GDP growth.
“Yet, despite some visible signs of revival, like new buildings on Front Street, this export-driven uptick has not translated into a broader recovery for Bermuda’s domestic economy, as yet.
“Household spending remains stagnant and the decline in capital investment signals caution, leaving many residents feeling little of the GDP’s reported gains.”
• For more on the Bermuda Chamber of Commerce Report, Head or Tails – A Coin Has Two Sides, March 2025, see Related Media
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