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Current account surplus rises

Bermuda's current account recorded a surplus of $215 million in the second quarter of the year, according to the latest Government statistics.

The figure was $1 million up on the from the surplus in the same quarter of last year.

The deficit on the goods account narrowed $24 million and services transactions realised a surplus of $100 million over the same period.

The balance of payments and international investment position statement said: “The increase in the current account surplus reflected mostly a $24 million improvement in the goods account balance and a $7 million improvement in secondary income account balance.

“In addition, the services account surplus increased $6 million. In contrast, the primary income account surplus decreased $238 million.”

The value of imported goods fell by 9.6 per cent to $235 million year over year.

There was drop in imports from all regions except the UK, where imports rose by $2 million from the previous year.

Bermuda brought in $19 million less in imports from its largest trading partner, the US, while imports from Canada dropped by $7 million.

The report said: “Among the commodity groups, the decline was reflected primarily in the imports of finished equipment, fuel and food, beverages and tobacco, which all fell $6 million below the second quarter of last year.

“Imports of machinery also contracted $5 million during the second quarter of 2015.”

The Island's revenue from the export of goods decreased by $1 million to $5 million in the second quarter of this year.

Receipts from services transactions stood at $346 million for the quarter.

Business receipts dropped $7 million, put down to a fall in insurance commissions, while income from Government services was halved to $1 million.

But the report said: “In contrast, receipts from travel services and transportation increased $1 million each.”

The Island's net international investment position — the stock of foreign assets held by Bermuda residents — registered above its stock of foreign liabilities by an estimated $4,957 million — an increase of $318 million over the same quarter in 2014.

The net acquisition position of financial assets increased by $720 million, due mostly to the holding of debt securities like bonds and money market instruments increasing by $414 million.

Bermuda residents' stock of foreign liabilities went up by $402 million, attributed to higher holdings of non-resident deposits, which rose $459 million.

Financial corporations held a net asset position of $5.498 billion on the strength of portfolio investment holdings such as bonds, notes and money market instruments.

The general government sector's external assets exceeded its liability holdings by $189 million.

Non-profit institutions serving households also recorded a net asset position of $20 million at the end of the second quarter of 2015.

But non-financial corporations had a $750 million net liability position with the rest of the world.

Less cargo: Bermuda's capital-account surplus widened as the value of imports fell

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Published November 16, 2015 at 12:42 pm (Updated November 16, 2015 at 12:42 pm)

Current account surplus rises

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