Bermuda's balance of payments surplus for the third quarter of 2001, which ended on September 30, stands at $34 million and could be seen as a sign of a continued slowing in the local economy.

Bermuda Monetary Authority (BMA) general manager Monroe Sutherland yesterday said: "The number is still positive but it is less so than in the past and may be reflecting a slow down in the economy."

Given a "slowing in the economy, this is what we would have expected", he added.

The number was revealed yesterday in the BMA's third quarter 2001 notice and although the third quarter results show a 25.9 percent gain over the second quarter's $27 million balance of payment surplus, the figure is in marked contrast to the same period in 2000 which recorded a surplus of $72 million.

The BMA's balance of payments records the movement of goods, services and financial transactions between Bermuda and the rest of the world.

The year to date surplus for the first nine months of 2001 of $123 million also shows a significant decline over the first nine months of 2000 when the year to date surplus stood at $181 million.

Mr. Sutherland attributed the drop-off in part to the Island's lagging tourism industry.

"Tourism is clearly a component affecting balance of payment totals. In the third quarter 2000 there was $154 million in travel receipts compared to $132 million in the third quarter of last year."

Mr. Sutherland added that the effect of the September 11 terrorist attack should be considered when looking at the $22 million dip in money coming in to the Island from tourism.

"Clearly tourism was dramatically affected by the events in New York on September 11 which brought the season to a premature end," he said.