an increase of $14 million or 16 percent over second quarter 1997, according to figures released yesterday by the Bermuda Monetary Authority.

While international business brought in less revenues, increases in tourism and investment earnings helped offset the decline.

For the half year Bermuda's current account surplus was $14 million or 18 percent of first half last year.

Second quarter outflow was $341 million down $4 million from second quarter last year. Bermuda imported $162 million worth of merchandise in the second quarter, $2 million more than during second quarter 1997. About $3 million more was spent on travel.

On the receipt side of the ledger Bermuda earned $441 million during the second quarter, an increase of about 2.3 percent over second quarter 1997.

However, while international businesses brought in less money, tourism revenues increased.

International business brought in $182 million during the second quarter, an $18 million or nine percent decline over second quarter 1997. Meanwhile revenues from tourism brought in $164 million during second quarter, $7 million or 4.5 percent more than second quarter 1997. Income from investments overseas brought in $54 million, $23 million or 74 percent higher than second quarter 1997.

"The merchandise account fell by $8 million (62 percent) in the second quarter of 1998 compared with the second quarter of 1997, primarily reflecting lower exports of pharmaceuticals,'' the Bermuda Monetary Authority (BMA) stated yesterday. "Investment income receipts were $23 million (74 percent) higher in the second quarter of 1998 than in the same period last year, due to strong earnings of financial services companies and pension funds.'' The BMA also noted that capital and financial account, made up of capital transfers, long term investment and short term investment, had a net outflow of $137 million in the second quarter. This represented an increased outflow of $72 million over second quarter 1997.

The increase resulted from increases in net long term and short term investments. Net long term investments increased by $39 million compared with second quarter 1997 reflecting investment by non-Bermudians in Bermuda residential and commercial properties. There was a net inflow of $30 million spent on property in Bermuda during the second quarter.

Net short term investment outflow was $167 million, $111 million higher than in 1997 second quarter. The growth was attributed to a net increase in the foreign currency positions of Bermuda's banks.

The BMA also reported that the money supply grew by 8.98 percent year-on-year during second quarter to $2.382 billion. The money supply grew by 1.11 percent over first quarter figures. The figures represent notes and coins in circulation, and demand, time and savings deposits with banks and deposit companies.

About $66 million in notes and coins were in circulation by June 30.

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