Bermuda's balance of payments rebounded at the end of 2003 to post a $120 million surplus ? 73 percent higher than the surplus recorded in 2002.

Much of the turnaround took place in the second half of the year when improvements in investment income and international business offset a poor trade balance and a slump in tourism receipts after Hurricane Fabian.

For the year, the Bermuda Monetary Authority recorded a current account surplus of $120 million compared to a surplus of $69 million in 2002. However, the figure continued to lag behind the surpluses of $145 million and $196 million recorded in 2001 and 2000 respectively.

For the fourth quarter of 2003, the balance of payments surplus was $42 million, compared to $8 million in the same period in 2003. Imports of merchandise jumped by $27 million to $204 million in the quarter while travel spending by Bermuda residents fell from $84 million to $58 million.

Tourism receipts slumped from $109 million to $54 million but investment income rose from $34 million to $91 million year over year. And professional services income rose from $279 million to $307 million.

A statement from the BMA said: "Overall, 2003 saw current account receipts increasing by over nine percent and payments nearly seven percent higher than in 2002.

"While the visible trade position deteriorated and the travel account was weak, net investment income receipts recovered strongly and the professional services sector continued to expand."