Bermuda’s economy grew an estimated 7.1 per cent year-on-year, adjusted for inflation, during the first quarter of 2024, the Minister of Economy and Labour has revealed.

Jason Hayward said that as the economy expanded, island residents had shown interest in opening businesses, primarily in the retail and services sectors.

There were 152 new businesses registered in the first quarter: 30 local companies, 105 exempt companies and 17 exempt partnership companies.

Mr Hayward said the island’s economy had demonstrated notable growth and resilience during the quarter compared with the same period last year.

He added: “This economic growth resulted from increased household expenditure and a rise in the export of goods and services.”

The island’s Gross Domestic Product increased 8.7 per cent in the quarter, attributed in part to rising prices.

“Evidenced by both real and nominal GDP figures, such growth highlights the economy’s resilience and the effectiveness of supportive government policies and prevailing market conditions,” Mr Hayward said.

While there were more international than local companies registered in the first quarter, he said it was “typical” for the island’s economy.

“The international business sector represents 28 per cent of our economic activity in Bermuda. That’s a significant portion of economic activity, and we expect that sector to grow.

“Part of our strategy is business retention and expansion in that particular sector.”

However, he said: “It means that we also have to do more to diversify our economy and make sure that we make the proper investments into small businesses in Bermuda so we can see a greater expansion in the local business sector.”

Mr Hayward said the Bermuda Economic Development Corporation had played a key role in building small and medium-size enterprises on the island.

“We are in the process developing a national entrepreneurship strategy but apart from that, the principle work that they [BEDC] do on an ongoing basis is to support the expansion of small businesses in Bermuda.”

He said the BEDC provided services such as business advice on incubator and accelerator programmes and educated entrepreneurs on small business management.

“That is the core part of their responsibilities and they are also responsible for the economic empowerment zones.”

Mr Hayward said the BEDC had been “extremely active” in maintaining branches in each economic empowerment zone of the island.

Mr Hayward said notable increases in employment income were observed across various industries during the first quarter.

He said: “This growth in employee remuneration across these sectors reflects positive economic performance.”

Speaking on cost-of-living challenges, he said: “The Government continues to put measures in place to improve the conditions for residents within Bermuda.”

He said that tomorrow, David Burt, the Premier, will speak in the House of Assembly on additional spending for a better quality of life for Bermudians, adding: “We can have an economy that is progressing in a positive direction and we can still have individuals feeling the negative impacts of the cost of living.”

Mr Hayward highlighted the move by Butterfield Bank to reduce its base interest rates on loans and mortgages by a quarter of a percentage point.

The change applies to Bermuda dollar residential mortgages, consumer loans, corporate loans and US dollar loans, which he said would “give some sort of ease to persons who are experiencing high mortgage and high loans repayment commitments”.

He added: “As we move into the remainder of 2024, the Government will continue to execute the strategic initiatives outlined in Bermuda’s Economic Development Strategy to ensure sustainable economic growth and development.

“We remain focused on ensuring this momentum continues, supporting businesses, and creating jobs for the people of Bermuda.”