A fall in investment income and a drop of in tourism have led to one of the island's key economic indicators falling dramatically.

The balance of payments current account surplus - which measures the amount of money Bermuda spends abroad and the amount of money that is brought into the Island - more than halved from $145 million in 2001 to $67 million in 2002, according to figures released by the Bermuda Monetary Authority last week.

And the boom in international business has failed to stem the drain of dollars from the island's economy - despite posting nearly a seven percent rise year on year. And this measure of Bermuda's prosperity has seen the surplus fall by almost a quarter from 1999, when the current account surplus was $254 million.

The balance of payments measures how much money a country takes in in receipts for trade, exports, travel and investment income against how much it spends buying the same products overseas.

Bermuda's balance of payments in the fourth quarter of 2002 stood at $7 million - up on the fourth quarter of 2001 deficit (spending more than came in) of $26 million in the wake of the September 11 terrorist attacks.

Travel spending in Bermuda increased from $134 million to $158 million - but the figure was still lower than the $205 million in 2000 and $265 million in 1999.

Investment income continued to be hard hit during the year, falling to $105 million from $246 million in 2001 and $164 million in 2000, reflecting the worldwide slump in stock markets and interest rates.

In the meantime, the BMA said payments by Bermuda residents and businesses abroad increased by $65 million to $1.776 billion with payments for imports of merchandise, travel and services rising.

For the fourth quarter of 2002, current account payments were $433 million while receipts stood at $440 million.

During 2002, $1.8 billion was taken out of the country in payment for imports, shipping costs, travel, investment income and professional, managerial, technical services and other goods and services.

But the Island received payments of $1.843 billion for the same kind of goods and services.

During 2002, $747 million worth of merchandise was imported, up $27 million compared to the year before.

Exports stood at $55 million compared to $36 million the year before, leaving a deficit of $692 million. 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 2001, $720 million worth of merchandise was imported, up $1 million compared to the year before. Exports stood at $36 million compared to $51 million the year before, leaving a deficit of $684 million.

Bermuda's money supply jumped 4.7 percent year over year in the fourth quarter of 2002 to $2.924 billion, the BMA said.

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Detailed statistics may be accessed at www.bma.bm