Bermuda's balance of payments recorded a surplus of about $10 million in the first quarter compared to a deficit of $19 million a year ago.

This according to economic figures for the three-month January through March period released on Friday by the Bermuda Monetary Authority (BMA).

This rise in surplus shown by this important economic indicator comes with a healthy increase in investment income taken in by the local economy as well as more income posted by professional management and technical services.

Looking at money that went out of the local economy, of note in the first quarter is the amount spent out on merchandise (imports) rose to $223 million - an increase of $31 million over the same period in 2003.

This may have been due in large part to an increase in materials being brought into the Island for repairs of damage from devastating Hurricane Fabian on September 5, 2003.

Other payments were more or less constant year on year, with shipping and transportation costs standing at $27 million and $29 million in the first quarter 2003 and 2004 respectively. Travel generated payments of $34 and $35 million in each period, investment income paid out was flat at $17 million in each period while payments to professional management and technical services grew slightly from $29 million in the first quarter, 2003 to $31 million during the same period this year.

Other goods, services and income recorded payments of $57 million during the period, an increase over the $53 million a year prior.

Current transfers stood at $53 million during the first quarter in 2003 and $57 million in the first quarter 2004.

The total economic spend for the period was $466 million, $36 million than the $430 million recorded for payments a year prior.

On the receipt side, the economy saw an inflow of $65 million more than a year prior with about $476 million during the period compared to $411 million during the first quarter of 2003.

Most notably, there was strong growth in investment income with $92 million taken in compared to $45 million during the first quarter of 2003.

Professional management and technical services receipts also grew from $268 million to $287 million, year on year.

Other goods services and income posted a $10 million increase, growing from $31 million to $41 million year on year.

But the receipts for merchandise (exports) fell to $7 million in the first quarter from $17 million during the first quarter a year prior. The BMA said capital and financial accounts, which comprise capital transfers, long-term investment and short term investment recorded an estimated net zero flow in the first quarter.

On the long-term investment side, outflows were said to be a “relatively low $24 million” from overseas investments and loan repayments but the effect of this was substantially offset by investment money coming into the local economy primarily the proceeds from local shareholders of the Bank of Bermuda that were not immediately reinvested abroad.

The bank's $1.3 billion sale to banking giant HSBC Plc in February brought significant funds into the Island - thought to be about $900 million.