Economic indicators suggest that Bermuda is on track to record sustainable growth in the coming years, according to the Premier.

David Burt, who is also the Minister of Finance, made that claim after tabling the 2023 National Economic Report in the House of Assembly yesterday.

The report, compiled by the Ministry of Finance, indicates that Gross Domestic Product may have increased by up to 4.5 per cent last year, fuelled by growth in International Business and a resurgent tourism industry.

The report also predicted a similar rate of growth this year.

The report noted that GDP in 2022 grew by 7.4 per cent. Nominal GDP for 2022 was reported to be $47.82 billion, up $541 million on 2021. GDP per capita rose from $113,755 in 2021 to $122,253 in 2022.

The report noted: “These increases indicate that Bermuda’s economy remains on a path of recovery post the Covid-19 pandemic.”

Personal consumption increased last year, and employment income was up 6 per cent.

The report said that the total number of jobs rose from 31,914 to 32,849 in 2023 — an increase of 935.

The recent drop in the rate of inflation is also expected to continue this year “before stabilising due to the reduction in fuel and non-fuel commodities, particularly in the US, United Kingdom, Euro area, Canada and Latin America”.

The report concludes: “The Government will continue to strengthen the local economy in 2024 through targeted investment strategies and diversification, prioritising several initiatives outlined in the Economic Development Strategy.”

The report warned that Bermuda was still “vulnerable to several external risks” that could hamper growth this year, but added that a predicted budget surplus this year gave the Government options to take counter measures.

The report said: “Despite the calming of global inflation, caution must be placed on the after-effects of tighter monetary policy.

“Higher global interest rates have led to tighter financial market conditions, investment, consumption, unemployment, housing markets and economic activity.

“These factors can contribute to a global slowdown in demand with spillover effects on the Bermuda economy.

“Government’s focus on creating fiscal buffers while balancing the social welfare of the population remains critical in combating any shocks in the near-to-medium term.

“The Government’s return to a balanced budget and surplus will create the necessary space for any budgetary manoeuvres required.”

During his Budget presentation, Mr Burt “set out a picture of economic growth and success realised in Bermuda”.

He said: “But we do so recognising that these are not laurels on which to rest until that success is more fully felt by the people we serve.

“We take the Government’s above-average performance and use it to invest in our people; no victory lap until the race is made fair for all; and no end to serving the people until the people enjoy the success occasioned by their manifested trust in this Government to deliver a fairer and better Bermuda.”

Mr Burt said that the Government’s ability to cut taxes, increase investment in infrastructure and return a balanced Budget was “no fluke”.

He said: ”The ability to do these things and deliver a balanced Budget for the people of Bermuda has been achieved through fiscal prudence, sound debt management, preserving and growing investor confidence, and delivering on our promise to reduce the tax burden on the working families of this Island.

“Since the height of the pandemic, we have reduced inflation rates, grown our economy while reducing our deficits, and moved our country towards a balanced budget.

“Our government can point to many statistics to highlight our successes. We can show in so many ways backed up with facts, that we are taking our country's finances into a better, stronger direction. We can also point to many initiatives that have been put in place to reduce the burdens on Bermudians and we can point to greater protections for our workers in the workplace.

“What I say next will be very important to the Bermudian people. Yes, by nearly every measurement, the economy is headed in the right direction, yet we know that too many Bermudians aren't feeling the impact in their lives.

“Too many continue to struggle with high food prices, while businesses boast about their profits. Too many face growing rental costs and shrinking housing options. From groceries, to healthcare, to mortgage rates, the escalation of prices in Bermuda is causing an escalation of financial hardship and frustration.

“Though we have made significant progress, and though Bermuda has seen lower inflation than other jurisdictions, we haven't gotten everything right. More must be done, and this Government remains determined to address these issues and improve the lives of our people.”

Mr Burt gave credit to Cheryl-Ann Lister, the Acting Financial Secretary, who stepped into the role three years ago.

Mr Burt said: “During this time, she has mentored the team, reorganised the ministry so that it is fit to face future threats to this country, and has done it all with her firm but loving demeanour.

“Ms Lister will be stepping down from the role at the end of March, but during her three years, she has left an indelible mark within the Ministry of Finance.

“Ms Lister, thank you for your hard work, guidance, selflessness, expertise and commitment to our country. You are a gem to us all, and I look forward to your continued advice as you support and mentor your successor.”