Bermuda's current account chalked up a surplus of $186 million in the first quarter of this year — an increase of $28m on the same period last year.

The figure represents the difference between the money flowing into the Island from overseas and that flowing in the opposite direction.

And even though the amount of money leaving Bermuda rose by $69m in the January through March period, that was more than offset by the extra $97m that flowed in.

A key factor in the rise was the fact that the value of goods imported dropped by $19m to $282m. Exports also fell by $1m to $6m, leaving the Island's goods deficit at $276m.

The money injected into the Island's economy by the growing international business sector shows up clearly in the figures released yesterday by the Department of Statistics.

Employee compensation paid out by international businesses to residents totalled $263m, an impressive 30 percent of the Island's total receipts.

The $16m rise on the same period last year indicates an increase in the number of companies and employees, as well as an increase in salaries.

Receipts for business services totalled $260m, while $100m was spent overseas by resident companies and individuals on business services, amounting to a surplus of $161m — up $31m on the first quarter of 2006.

There was a 37 percent rise in the amount paid out by residents for transportation services, in the first-quarter — $89m compared to $65m in 2006. Meanwhile transportation receipts fell by half to $8m.

The government services surplus remained unchanged at $37m, as did the amount paid out overseas for government services at $6m.

Investment income surplus boosted the Island's coffers by $91m, compared to $100m a year earlier.

The Island's financial account saw a large swing, from a net inflow of $160m last year to a net outflow of $652m in the first quarter of 2007.

While portfolio investments and direct investment both enjoyed a healthy increase in inflow compared to 2006, the category of 'other investments' registered a net outflow valued at nearly $1.3 billion, compared to an inflow of $274 million last year.

All transactions associated with changes of ownership in foreign financial assets and liabilities of the economy are included in the financial account.

The first-quarter rise follows a huge leap in 2006, when the year-end surplus totalled $901m — up $347m on 2005.