Balance of payments surplus soars 50% – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

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Balance of payments surplus soars 50%

Bermuda's balance of payments surplus rose more than 50 percent to $269 million in the second quarter of 2010.

The figure, which represents the difference between receipts and payments in transactions with overseas entities represents a $90 million increase year-over-year.

A fall in imports resulted in the Island's goods trade deficit falling $24 million to $270 million. With the exception of food and chemical imports, less money was spent on all other main commodity groupings of imported goods. Services transactions realised a surplus of $132 million for the quarter. This represented a $32 million increase on last year's figure.

Bermuda's asset accounts recorded a net inflow of $182 million in the second quarter of 2010, in contrast to the $375 million net outflow recorded in the same quarter of the previous year.

Financial account transactions resulted in a net inflow of $216 million in the second quarter, compared to a $365 million net outflow last year.

The biggest contributor to the receipts was the $344 million employment income paid to Bermuda residents by overseas employers, up $8 million on last year. Receipts from services totalled $398 million for the quarter, a 14 percent increase over last year.

Receipts from business services stood at $234 million for the quarter, increasing by $21 million compared to last year.

A $13 million gain in financial services receipts was the main contributor to growth in this category.

Among other business services, $7 million extra was earned from accounting services. In contrast, lower inflows were recorded for transportation, Government and ICT services.

Travel receipts received a much needed $31 million boost from increased passenger arrivals and higher per person expenditure.

Residents earned $17 million more on equity, bonds and money market investments than a year prior.

This quarter featured increased inflows of dividends on direct investments and profits realised from the sale of investment instruments.

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Published October 22, 2010 at 1:00 am (Updated December 09, 2010 at 2:34 pm)

Balance of payments surplus soars 50%

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