Bermuda's current account surplus jumped 18 percent to $194 million, compared to the $176 million surplus recorded in the first quarter of 2006 according to statistics released by the Department of Statistics.

Higher exports of services led to this twelfth consecutive quarterly account surplus. During the first quarter of 2006 services, (mainly activities carried out in the international business sector), stood at $176 million.

In that sector, exports of business stood at $247 million, while the import of business services totalled $63 million, resulting in a $184 million surplus.

Imports of goods, the major source of foreign exchange use in Bermuda's current account increased to $271 million.

This was a direct result of retailers importing more goods on the Island. In contrast the value of goods edged up to $14 million, the bulk of which are re-exports, including the sale of alcoholic beverages to airlines and cruise ships.

As a result the goods trade deficit (difference between the value of goods imported and exported) increased to $257 million from the $225 million deficit in the first quarter of 2005.

Total payments to non-resident (outflows) in the first quarter of 2006 stood at $570 million compared to the $491 million registered in the first quarter of 2005.

Total receipts from non residents (inflows) in the first quarter of 2006 jumped to $765 compared to the $667 million posted in the first quarter of 2005.

Payments for travel services edged up $5 million to $53 million in the first quarter of 2005, reflecting an increase in spending on a personal travel for education, health and other purposes.

The number of residents travelling overseas increased 8.8 percent in the first quarter of 2006.

Receipts for travel services rose $14 million to $59 million, resulting in a $5 million more in the first quarter quarter of 2006, surpassing the total spent by Bermuda residents travelling overseas.

Employee compensation was another major contributor to the growth in the surplus on the current account.

Employee compensation receipts which includes wages and salaries paid to residents from Bermuda from non-resident businesses was recorded at $209 million.

Employee compensation payments to non-residents amounted to $15 million, resulting in a $195 million surplus on this account.

Investment income also contributed to the current account surplus as inflows exceeded outflows by $95 million.