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Imports continue to grow in Q2

Imported goods increased 9.6 percent to $250 million in the second quarter of 2013.

The value of goods imported to Bermuda grew in the second quarter. And residents accumulated foreign assets.These are two highlights from Bermuda’s Balance of Payments & International Investment Position report for the second quarter of 2013.The report showed overall, the Bermuda current account recorded a surplus of $228 million in the second quarter of 2013 — a $13 million decrease year-over-year. The surplus reflects a positive balance in the Island’s transactions with the rest of the world.But the “balancing item” (net unobserved inflow or outflow needed to balance the accounts) was negative $263 million, which is more than the reported surplus.Total investment by Bermuda residents in financial assets jumped $547 million, due mostly to residents increasing their holdings of currency and deposits by $607 million during the quarter. This increase was partly offset by the decline in the value of money market instruments and other debt securities held by residents.Imported goods increased 9.6 percent to $250 million in the second quarter of 2013.Imported goods from the Island’s largest trading partner the United States increased $21 million in Q2 2013, while the value of imports from Canada increased $6 million over the same April to June quarter.Imports of fuel recorded the largest increase of $10 million.Moderate increases were recorded in the food and finished equipment categories which advanced $7 million and $4 million, respectively. In contrast, imports of transport equipment fell 2 million.The decline in the current account surplus mostly reflected changes in the goods account, where the deficit worsened by $22 million. The widening of the goods trade deficit was enough to offset increases in the surplus on the primary income account.Services transactions realised a surplus of $124 million in the second quarter of 2013.The surplus on Bermuda’s primary income account grew to $392 million in the second quarter of 2013.