Imports decline for tenth consecutive quarter
Bermuda has recorded another quarter of declining imports, reflecting the continued shrinking of the local economy.
According to the Government’s Balance of Payments statistics released yesterday, a total of $220 million was spent on imported goods in the third quarter of 2012, representing a $22 million decline from the same period last year.
This marks the tenth consecutive quarter of reduced payments for imported goods.
In addition, revenue from exports abated $1 million when compared to the same quarter of the previous year. As a result the goods account deficit narrowed to $218 million, a reduction of $20 million during the quarter.
Bermuda’s current account surplus grew to $228 million in the third quarter, an $85 million increase year over year. The increase is due to the combined effect of an increase in current account receipts and a decline in payments.
The third quarter saw an $8 million increase in total receipts (payments made to Bermuda) primarily reflecting a jump in insurance service transactions (increase of $9 million) and investment income (increase of $14 million). This number was partially offset by a decrease in transportation services and financial services.
Payments on the current account (payments to the rest of the world) fell by $75 million to $593 million during the third quarter. The decrease in investment income, which fell from $105 million to $49 million, was the main contributor to the overall decline.
Government’s net debt with foreign entities stood at $1.49 billion, up from $1.2 billion in the second quarter of 2012. Non-financial Bermuda corporations owed the rest of the world $921 million. Conversely, financial corporations have a positive net investment position of $4.3 billion.