Euromonitor reports that Bermuda realizes about a quarter of its gross domestic product (GDP) from international business. Roughly one-third of the workforce is non-Bermudian although that percentage has been gradually falling during the present decade. Bermuda's lack of economic diversification and excessive reliance on mature industries limits its growth prospects. It is feared the secular decline in the tourist sector will leave Bermuda even more dependent on financial services and thus increasingly vulnerable to external shocks. Analysts point to the steady drop in the current account surplus, for which the decline in tourism is at least partly responsible. Unemployment has been steadily rising for several years. In 2021, the jobless rate stood at 6%.

Economic pillars are international business and tourism. British Bermuda is a North Atlantic business & tourism center.  Not being in the Caribbean, it is the only part left of British North America after the USA and Canada got their independence.  There is a Bermuda Government Department of Tourism web site which includes what offices in Bermuda and overseas it operates at Bermuda taxpayers' expense.  Bermuda has a high-cost economy.  The World Bank rates it as #5 in the world in GNI - Gross National Income.  Most of its money comes from being an International Business center or offshore jurisdiction - some would say tax haven - for corporate entities (not for their employees).  It is also a long-established tourism resort.  It has no natural resources of its own in its 21 square miles, no oil, no gas, and no heavy industry.

High incomes to support discretionary spending: Bermuda enjoys one of the highest per capita incomes globally, having successfully exploited its location by providing financial services and luxury tourist facilities.  GDP per capita stood at nearly US$118,000 in 2020, the third highest in the world that year.  This bodes well for discretionary spending categories, particularly luxury goods, which will continue to benefit from large purchasing power of a meaningful number of Bermudians.  Indeed, consumer expenditure is expected to rise by more than 20% in 2025 versus 2020 levels in USD terms.

The population of Bermuda in 2022 is 61,939. Declining birth rates are causing a drop in natural change are expected to lead to a shrinking population in Bermuda over 2021-2040, when it is forecast to contract by 7.4% versus growth of 9.3% for the Latin American average in that timeframe.  In 2040, the population will stand at only 57,500, which could create challenges for its workforce, although many are expatriates. Nevertheless, the government has launched a strategy to incentivize Bermudians born abroad to return to the islands, in order to plug the population decline and reinforce the labor force.

The population of Bermuda is aging rapidly: Those aged 65+ are the only cohort that will experience growth over 2021-2040, expanding by 13.6% over this timeframe and against a backdrop of a contraction in those aged 0-14 of 18.1%.  Additionally, the old-age dependency ratio is expected to rise meaningfully to stand at 36.8% in 2040 versus 23.5% for the Latin American average.  The rapidly-ageing populace is expected to exert pressure on state coffers in the form of greater pension’s provision and higher healthcare costs, which has led the authorities to launch a strategy aimed at shoring up the healthcare service to future proof against the shock of higher demand. 

USDA’S Agricultural Trade Office or “ATO” located in Miami reports that consumer tastes have gradually matured over the years, moving from canned foods to specialty items produced by specific brand names. Current American trends, such as the movement towards healthy, organic foods and home meal replacement, are slowly making an impact on the tastes and lifestyle preferences of the Bermudans. More and more women are working and Bermudans can afford to pay higher prices for the convenience. Consumers are demanding more expensive, exquisite foods. Bermudans are familiar with U.S. brands from television and most of the major brands are available in the market. 

Economic pillars are international business and tourism. British Bermuda is a North Atlantic business & tourism center.  Not being in the Caribbean, it is the only part left of British North America after the USA and Canada got their independence.  There is a Bermuda Government Department of Tourism website which includes what offices in Bermuda and overseas it operates at Bermuda taxpayers' expense.  Bermuda has a high-cost economy.  The World Bank rates it as #5 in the world in GNI - Gross National Income.  Most of its money comes from being an International Business center or offshore jurisdiction - some would say tax haven - for corporate entities (not for their employees).  It is also a long-established tourism resort.  It has no natural resources of its own in its 21 square miles, no oil, no gas, and no heavy industry.