of the year to $16 million in the fourth quarter of 2000 compared to the same period the year before, according to statistics released by the Bermuda Monetary Authority.

And year over year the balance of payments surplus dropped by 24 percent from $260 million to $197 million.

In the report on the balance of payments estimates for the quarter to 31 December, 2000, $16 million more came into the country than was paid out.

Current account payments were $412 million, while receipts stood at $428 million for the quarter.

For the year 2000 current account payments stood at $1.6 billion ($1.5 billion in 1999), while receipts stood at $1.8 billion (marginally more than in 1999).

The balance of payments shows the movement of goods, services and financial transactions between one country and the rest of the world and is a strong economic indicator.

During 2000, $1.6 billion was taken out of the country in payment of imports, shipping costs, travel, investment income and professional, managerial, technical services and other goods and services.

But the Island received payments of $1.8 billion for the same kind of goods and services, virtually unchanged from the same period the year before.

In money terms the balance of payments is the total of all receipts from abroad and all payments to recipients abroad.

All receipts and payments of whatever nature are included, whether they be payments and receipts for non-commercial purposes, such as legacies or pension, for goods sold or services rendered, for investment purposes, on behalf of the Government or of private persons and agencies.

During 2000, $719 million worth of merchandise was imported -- up one percent on the year before. Exports stood at $51 million, the same as in 1999, leaving a deficit of $668 million.

To bring these goods to the Island cost $114 million, up 5.5 percent from the year before, while shipping and transportation exported out of Bermuda cost $26 million, up 30 percent on the year before.

The shipping and other transportation deficit estimate stands at $88 million for 2000.

In the area of travel, the Island saw $216 million brought in, while $434 million was spent on the Island (noted as receipts), leaving a net balance of $218 million.

Investment income in current account payments -- the payments and receipts for immediate transaction, such as the sale of goods and rendering of services and the capital -- is listed as $64 million and as $232 million in receipts, leaving the net balance of $168 million. The money spent on professional, manual and technical services on the current account stands at $93 million, while in receipts this sector took the highest category on the table of $930 million.

In the current account, other unspecified goods, services and income were recorded at $233 million and current transfers at $174 million.

The receipts of other goods, services and income came in at $123 million and current transfers at $14 million.

The capital and financial account, which is made up of capital transfers, long-term investment and short-term investment, recorded a net loss for the year of $119 million, compared to a $173 million loss the year before.

Surplus shrinks A statement from the Bermuda Monetary Authority said: "The balance of payments estimates are, to a large extent, based on estimated and historical data; they should therefore be interpreted with a suitable degree of caution.

The estimates for professional, managerial and technical services receipts for 1999 and 2000 have been revised in light of the findings of International Companies 1999, a study conducted by Dr. Brian Archer as a consultant to the Ministry of Finance.'' CHART 2000 at a Glance Balance of payments surplus: $197m ($260m in 1999) Current Account payments: $1.6 billion ($1.5 billion in 1999) Receipts: $1.8 billion ($1.8 billion in 1999) Merchandise imported: $719m ($712m in 1999) Exports: $51m ($51m in 1999) BUSINESS BUC