Country Economic Forecasts - Bermuda

Country Economic Forecasts - Bermuda

Bermuda has been in the middle of the pack relative to the other Caribbean economies in terms of recovery from the pandemic, with real GDP growing by 2.1%. However, any further recovery in 2022, in our view, will depend on global growth rates and an increase in tourism receipts.An example contributing to the economy’s limited recovery has been the decline in cruise and air travel, which is down $20.7 million, compared to Bermuda’s initial budget. Despite the decline, the average length of stay has risen to almost 14 days, more than double the pre-pandemic average. Bermuda’s rigorous arrival process has played a key role in consumers’ decisions when choosing a safe destination. After running a budget deficit in 2021, when the government spent $127.2 million in pandemic-related expenses, the aim is to achieve a balanced budget within the next three years. Total expenditure is 1.6% lower than Bermuda’s previous estimate, mostly due to effective vaccine distribution and cutting costs across all ministries by an average of 5.1%.254000104140Real GDP is forecast to grow 2.5% in 2022, with average length of stay by tourists exceeding double pre-pandemic levels00Real GDP is forecast to grow 2.5% in 2022, with average length of stay by tourists exceeding double pre-pandemic levelsDespite the ongoing effects of the pandemic, the international business sector has remained strong. Jobs in this sector have grown 4.5% amidst the pandemic, while jobs in tourism are recovering thanks to a new hotel and a new resort on the island. These factors have kept the unemployment rate relatively low, at 4.9%.Inflation is expected to increase slightly over the medium term but still remains below 2%.