A rise in spending in international business and in tourism could not stop one of the main economic indicators dropping by over 25 percent during the second quarter of 2003.

The balance of payments current account surplus, which measures the amount of good and services brought into the country compared to those exported, fell from $47 million in the second quarter of 2002 to $35 million for the same period this year.

According to figures published yesterday by the Bermuda Monetary Authority for the period between the beginning of April and the end of June, spending by international business rose by $25 million, or ten percent year over year, from $248 million to $273 million.

But the boom in international business has failed to stem the drain of dollars from the Island?s economy, with investment income down by $6 million to $60 million and the amount of merchandise imported up from $208 million to $253 million, a jump of 22 percent. However, compared to the first quarter of the year, when there was a deficit of $19 million, this measure of Bermuda?s prosperity appears to be doing better.

Spending by tourists, which is listed as travel receipts, rose from $134 million for the second quarter in 2002 to $141 million for the same period this year.

Investment income is still suffering, falling from $64 million for the second quarter of 2002, to $60 million for the equivalent period this year. More Bermudians invested money abroad with $16 million invested for the second quarter of 2002, compared to $19 million for the same period this year.

In the meantime, the BMA said payments by Bermuda residents and businesses abroad increased to $498 million from $463 million with payments for imports of merchandise accounting for the main hike.

But this was balanced out by the Island receiving $533 million for the same goods and services for the same period this year.

During the second quarter of 2003, $235 million worth of merchandise was imported, compared to $16 million that was exported, leaving a deficit of $219 million.

There was also a deficit of shipping and other transportation, which stood at $23 million, after $27 million was brought in and $4 million sent out.

The BMA said the balance of payments figures are, to a large extent, based on estimated and historical data and should therefore be interpreted with a suitable degree of caution.

During 2002 there was a surplus in the current account of $67 million, half of what there was in 2001, when this figure stood at $145 million.