Bermuda’s Economy Moving in the Right Direction

Introduction to Bermuda’s Economic Progress

HAMILTON, Bermuda, CMC—Premier David Burt said Monday that Bermuda’s economy is moving in the right direction “during an uncertain time” in the world and that his administration is continuing to honor its obligations to the population while undertaking strong financial control.

Addressing a post-budget press conference, Burt told reporters that the British Overseas Territory’s economy, while not perfect, is “moving in the right direction.”
Premier David Burt

Investments and Economic Growth

Burt said the 2025 fiscal package allowed the Government to invest significantly in public services, social spending, health, housing, transportation, education, security, and infrastructure.

“These investments represent a deliberate strategy to strengthen Bermuda’s physical and digital infrastructure, improved service delivery, and ensure that the island is well positioned for continued long-term economic and social resilience,” Burt said, adding that his administration is continuing to deliver targeted tax relief that benefits families and businesses, and which will ultimately impact the cost of living.

He said among the interventions from January 1, 2026, the base rate on land tax would be reduced by 50 percent from US$300 to US$150 and that from April 1, the Government made further reductions, such as to the private car licensing fee, which will decrease by 10 percent.

Burt said the combination of the reductions will save the average family US$1,000 a year, in addition to other benefits such as reductions in customs duties and payroll taxes. He said in this year’s Budget, US$53.6 million was allocated for the Cabinet Office, an increase of four million dollars compared to last year.

Cabinet Office Investments

Burt said that the additional funding is to provide support, through US$975,000 in funding, to digital transformation to improve online services throughout the Government while using artificial intelligence more to improve service delivery to residents.

The allocation covers funding to boost the Department of Information and Digital Technology, the Department of Planning, and the expansion of the public service bursary program.

“These additional investments for the Cabinet Office are laser-focused on improving the delivery of government services while investing in training and development for the future of the public service.

“The data in this year’s budget speaks for itself; we are not where we were and are no longer in recovery mode. The progress is here today, thanks to this Government’s sound economic and financial management. We are stronger, more stable, and well-positioned for a brighter future.”

Response to Critics and Economic Forecast

Last weekend, the shadow finance minister, Douglas De Couto, said the Government was taking credit for the economic growth driven by international business.

But Burt said the Government had received “zero credit” for maintaining a strong international business sector over the years, recalling that in 2017, the industry was affected by US tax cuts and, later, by other factors such as the COVID-19 pandemic.

“The reality is that it is because of this government’s sound economic management, working with the private sector and with the regulators continuing to promote Bermuda’s international business sector overseas that we have seen this growth,” Burt told reporters.

The Government forecasts that the local economy will expand 3.5 percent to four percent this year, driven by international business, tourism, renewed investment in public infrastructure, and its economic development strategy.

It said external risks remain a threat, with high interest rates still being felt, tightening financial conditions, reduced consumer spending, and slowing investment and housing markets.

Conclusion

In conclusion, Premier David Burt’s administration is working to strengthen Bermuda’s economy through investments in public services, tax relief, and digital transformation. The Government’s sound economic management has positioned the island for long-term economic and social resilience. Despite external risks, the local economy is forecasted to expand, driven by international business, tourism, and investment in public infrastructure.

Frequently Asked Questions

What is the current state of Bermuda’s economy?

Bermuda’s economy is moving in the right direction, with the Government investing in public services, social spending, and infrastructure.

What tax relief measures has the Government implemented?

The Government has reduced the base rate on land tax by 50 percent and decreased the private car licensing fee by 10 percent, saving the average family US$1,000 a year.

What is the forecast for Bermuda’s economy?

The Government forecasts that the local economy will expand 3.5 percent to four percent this year, driven by international business, tourism, and investment in public infrastructure.