Latest stats show ongoing increase in I.B. incomes; Minister says Gov’t will work so more residents experience growth
Bermuda’s economy continues to grow, Government stated today. GDP has increased, and employment incomes are up in the last quarter of 2024 – particularly in the construction sector.
However, Minister of Labour and Economy Jason Hayward acknowledges that while the economy may be doing well, people’s purchasing power has been eroded.
He says if Government can help control costs in Bermuda, more will be able to experience our economic growth.
“The economy has outperformed expectations”, Minister of Economy and Labour Jason Hayward says. “In the fourth quarter of 2024… the GDP and constant prices increased by 6.5%, capping off the year in strong economic expansion.”
Figures shared today show that more money was earned in the construction sector in late 2024 – nearly 14% up on Q4 2023.
Year-on-year, the sector has seen employment income grow by 5.6 per-cent.
All sectors have seen some level of growth. Minister Hayward said employment income in the fourth quarter was up 4.4% over 2023 levels.
Total employment income for the year is up 7.8% on 2023, and it’s clear that International Business has increased it’s lion’s share. At $1.78 billion, the sector has seen a 12.3% year-on-year increase.
IB now represents more than two-fifths, or 40.7%, of total employment income in Bermuda.
In 2023, the sector employed less than a sixth, or 15%, of all workers in Bermuda.
Total income in Transport and Communication is up 12% for the year, Hotels and Restaurants up 7.5%, and Banking, Insurance and Real Estate up 6.9%.
Minister Hayward says the increase in employment income across all major industries “not only boosts the financial well-being of individuals, but also stimulates consumer spending, drives economic growth, and enhances the overall prosperity of Bermuda.”
Lost Purchasing Power
Earlier this year, a Bermuda Broadcasting report indicated that during the decade prior to the pandemic, 3 out of 5 workers were in sectors where median incomes had not kept up with inflation.
From 2019 to 2023, that had increased to 67%, or 2 in every 3 workers, whose incomes may have trailed behind the cost of living.
Gary Foster Skelton asked if it is fair to continue to talk about economic growth, “if the statistics seem to indicate that the majority of workers may not be experiencing that?”
Minister Jason Hayward responded, “There is this economic nuance, where the economy is progressing… but there is an erosion of one’s purchasing power based off the cost of living.”
“If we’re able to draw back on some of the items as it pertains to controlling costs in Bermuda, as well as remove some of the taxes where we can increase purchasing power of residents, I think that we’re going to see the attitudes around the economic performance change.”
What I would say is that we have more Bermudian working… [the] lowest unemployment rates that we’ve experienced in a number of years… so there’s positive signs there’s opportunity being created in our economy.”
“The government will continue to put policies in place which make sure that the growth is actually inclusive… where the residents of Bermuda actually benefit from the growth that is being experienced overall.”
In the pre-budget report, Government proposed to reduce vehicle licensing fees, lower the monthly cell phone fee, reduce land tax, and make further reductions on fuel duty to bring down energy costs – among other proposals.
Watch Bermuda Broadcasting’s coverage of the Budget on Friday to find out what measures Government will put in place.
