Leading financial analysts Standard & Poor?s (S&P) have upgraded Bermuda?s outlook for 2007 from ?stable? to ?positive? ? a major independent stamp of approval for the state of the Island?s economy.

And in a double dose of good news for the economy, the latest balance of payments figure show Bermuda boasted a current account surplus of $243 million in the third quarter of this year ? up $92 million on the same period last year.

Finance Minister Paula Cox hailed the news as evidence of the strength of the economy, as highlighted in a positive report by financial analysts Standard & Poor?s (S&P).

In broad terms, the balance of payments figures, released by the Government?s Department of Statistics, mean that Bermuda sold $243 million more goods and services to the rest of the world than it bought from overseas during July, August and September.

Income generated by the ever-expanding international business sector helped the Island to rake in $92 million more in foreign exchange earnings in the third quarter than it managed in the same period last year.

Ms Cox predicted that Bermuda?s calendar-year balance of payments surplus could be in the region of $835 million by the year?s end.

?The Ministry of Finance is very encouraged by the good news on the balance of payments. This follows close on the heels of an excellent report issued by S&P about the strength of Bermuda?s economy,? Ms Cox said.

?S&P remarked about the vibrancy of Bermuda?s external sector and the third-quarter balance of payments data released by the Department of Statistics demonstrates the dynamism of the sector that continues to be driven by robust advances for international business supplemented by the improving results for the tourism sector.

?On the strength of the first three quarters for 2006, it certainly appears that Bermuda is headed for a very strong balance of payments surplus for the full calendar year, perhaps in the region of $835 million.

?This showing would be consistent with the assessment of future prospects for Bermuda that underpin S&P?s upgrade of Bermuda?s outlook in 2007 from ?stable? to ?positive?.?

?I think the hard data, such as the balance of payments statistics, tells the very bright and uplifting story about this Government?s sound and effective economic management. The Ministry of Finance plans to sustain the positive trends as we finalise the preparations for the 2007/08 national Budget.?

During the third quarter, money that flowed overseas from Bermuda totalled $677 million, up $138 million on 2005, while $920 million flowed in to the Island, well up on the $690 million recorded last year.

The trade deficit on goods was $251 million, reflecting the fact that most goods consumed on the Island are imported. That deficit was 9.6 greater than last year?s figure of $229 million.

Meanwhile the services surplus rocketed to $208 million, $85 million greater than during the same period last year. However this figure was $11 million less than in the previous quarter, a dip put down by the Department of Statistics to a fall in the government services balance.

The services surplus was largely generated by business services, which recorded a surplus of $186 million for the quarter.

The figures showed evidence of a growing salary bill for the international business sector, as employee compensation payments increased by 3.2 percent for the quarter.

However the investment income surplus fell to $83 million ? a drop of nearly 40 percent from the previous quarter ? on increased payments and decreased receipts.

The Island?s financial account saw a net inflow of $1,035 million in the quarter, a $277 million increase over the second quarter.