Bermuda ran a $26 million current account balance of payments deficit in the last quarter of 2001 as the September 11 terrorist attacks took a toll on tourism spending and investment income of the Island.

The balance of payments - which measures the amount of money Bermuda spends abroad and the amount of money that is brought into the Island - was the first deficit since the first quarter of 1998, as Bermuda spent $26 million more than it took in in the three months to December 31, 2001.

For the fourth quarter of 2000, the Island had a surplus of $20 million, the Bermuda Monetary Authority said.

The BMA said that for all of 2001, the Island recorded a surplus of $145 million, a 30.6 percent decline on the $209 surplus recorded in 2000.

The BMA said the deficit in the fourth quarter occurred after travel spending in Bermuda dropped to $55 million from $69 million in the same period in 2000.

Investment income in the quarter slumped by $12 million from $61 million in 2000 to $49 million, relfecting the worldwide slump in stock markets after the September 11 terrorism attacks.

In the meantime, the BMA said payments by Bermuda residents and businesses abroad increased by $28 million with payments for imports of merchandise and services rising.

For the year, the balance of payments was $145 million in 2001 compared to $209 million in 2000.

For the fourth quarter of 2001, current account payments were $446 million while receipts stood at $420 million.

During 2001, $1.71 billion was taken out of the country in payment for imports, shipping costs, travel, investment income and professional, managerial, technical services and other goods and services.

But the Island received payments of $1.856 billion for the same kind of goods and services.

During 2001, $720 million worth of merchandise was imported, up $1 million compared to the year before. Exports stood at $36 million compared to $51 million the year before, leaving a deficit of $684 million.

The BMA said the balance of payments figures are, to a large extent, based on estimated and historical data and should therefore be interpreted with a suitable degree of caution.

Bermuda's money supply jumped 10.08 percent year over year in the fourth quarter of 2001 to $2.7 billion, the BMA said.

Detailed statistics may be accessed at www.bma.bm