Premier Craig Cannonier says tough decisions still have to be made as Bermuda attempts to claw its way out of a four-year recession that has left the island with high unemployment.
He says the British overseas territory will have to reinvent itself to survive.
In a televised national address to mark the first anniversary of the One Bermuda Alliance's victory in the general elections last December, Cannonier said the government has an "aggressive agenda" to help turn the island's economy around, but tough decisions will have to be made.
"Throughout our history, to survive, we've had to reinvent ourselves time and time again," Cannonier said, adding that "today, we have to do it again and believe me, we will."
The premier said: "With God's help, we have always been able to overcome challenges from facing storms at sea and the hurricanes that have crossed our Island to economic adversity during global wars. We now face another challenge."
Cannonier added: "How we react to this challenge will define us as a people. These are extraordinary times that will call for extraordinary measures, but I want you to know that I am confident that we are moving in the right direction. There are still many more tough decisions to come, but we are on the right path."