Imports fall by $21 million
The total value of goods imported to the Island continued to fall in the second quarter, dropping by $21 million to $232 million.
With the exception of an increase in clothing, footwear and miscellaneous items, expenditure on all other import commodity groups declined when compared to the same quarter in 2010.
Receipts from services increased marginally by $1 million to $397 million during the quarter with travel [tourism] receipts growing by $6 million, showing increased spending by visitors.
The Bermuda current account recorded a surplus of $287 million in the second quarter of 2011.
This represented a $66 million increase year-over-year compared to the second quarter surplus of $221 million recorded in the previous year.
The growth in the current account surplus was attributed to a decline in payments for goods and services coupled with an increase in receipts.
Payments for goods and services fell by $46 million to $580 million during the second quarter.
The decrease in payments for goods, transportation services and ICT services were the main contributors to the overall decline.
Current account receipts from employee compensation and travel services boosted total receipts by $19 million above last year’s total.
The goods trade deficit narrowed to $228 million in the second quarter of 2011 from $249 million in 2010.
Services transactions realised a surplus of $151 million for the quarter.
Bermuda’s combined surplus on primary and secondary income transactions increased by $24 million to $364 million in the second quarter of 2011.
Residents paid $20 million less for services provided by non-resident businesses during the quarter.
The decline in payments was reflected in the transportation, business services and travel accounts.
Expenditure on transportation services fell by $13 million.
Specifically, payments for passenger air transport and freight charges on imported goods were down $8 million and $3 million, respectively.
The balance on business services fell by $6 million, mostly due to a decline in expenditure on telecommunications as reflected in the ICT services category. The travel account recorded a $2 million decline in payments, reflecting lower expenditure by residents during their business and personal trips abroad.
Bermuda’s asset accounts recorded a net outflow of $384 million in the second quarter of 2011, in contrast to the $158 million net inflow recorded in the same quarter of the previous year.
The financial account recorded a net outflow of $379 million during the quarter. This was the main contributor to the net outflow recorded in the assets account.
Residents accumulated $524 million more in overseas assets this quarter compared to 2010.
Also, the level of financial account liability decreased as reflected in the $47 million decline in inflows. These fluctuations mostly reflected money balance shifts made by financial sector establishments between investment instruments and the withdrawal of overseas funds to meet customer demands