Bermuda’s economy outperformed expectations in 2024, with stronger gross domestic product growth, rising employment income and a widening trade surplus.

However, the Government is focusing squarely on the challenges that residents say they still feel most: the cost of living and access to affordable housing, healthcare and food.

At a press conference, Jason Hayward, the Minister of Economy and Labour, acknowledged that while economic growth was real, driven by sectors such as construction, international business and tourism, it had not translated into financial relief for many households.

“There is this economic nuance where the economy is progressing, [with] greater levels of jobs, and the economy is doing well,” Mr Hayward said. “But there is an aversion of one’s purchasing power based off the cost of living.”

He reiterated that the Government planned a Cost of Living Summit and had already appointed Bermuda’s first minister responsible for the cost of living, Alexa Lightbourne, in an attempt to combat these issues.

“We looked at what were the pain points regarding our cost of living. It was the cost of food, the cost of housing and the cost of healthcare,” he said.

Bermuda’s trade surplus widened to $361 million in Q4 as exports held strong and imports remained steady. The quarterly GDP report shows the that economy continued to grow.

After adjusting for inflation, real GDP rose by 6.5 per cent in Q4. In nominal terms, the economy expanded by 7.3 per cent, capping off a year of solid performance.

In Q4 alone, employment income in international business topped $300 million, while the construction sector grew 13.8 per cent. Mr Hayward said overall employment income was 4.4 per cent higher than in 2023, with “robust construction activity happening earnestly again”.

But with an ageing population and fewer Bermudians able to replace retirees, immigration reform is also a priority. “We recognise the labour challenges and the skills mismatches if we don’t have immigration policies that enable companies to get the talent that they actually need,” said the minister.

To support that goal, the Government is digitising the immigration process, with a platform modelled after one in the Bahamas.

“It allows for us to do digital, electronic submissions of applications … and then receipt of an electronic document submitted back to the applicant in a timely manner,” he said. The system is expected to go live by June.

With the Budget to be released on Friday, the minister said residents should expect tax cuts aimed at boosting disposable income.

“I think you’ll be pleased,” he said. “The economic performance has allowed the Government to have the fiscal capacity to reduce taxes in a number of areas.”