Bermuda’s net acquisition of financial assets, resulted in an increase of $1 billion

Balance of payments figures released by the Government of Bermuda show a current account surplus of US$313 million in the second quarter of 2021, a $37 million increase year over year.

Bermuda’s 2021 second quarter Balance of Payments and International Investment Position identifies the factors influencing the year-over-year performance. These factors include the country’s net acquisition of financial assets, which resulted in an increase of $1 billion compared with a decrease of $130 million last year.

The 2021 second quarter Balance of Payments and International Investment Position document, which is published by Bermuda’s Department of Statistics shows transactions on Bermuda’s assets accounts resulted in a net lending position of $351 million.

Minister for the Cabinet Office Wayne Furbert, who released the document, said: “Bermuda’s trade with non-residents resulted in a $303-million surplus for the first quarter of 2021, increasing $98 million from a year ago. This increase was mainly due to a decrease in payments to non-residents which was larger than the fall in receipts from non-residents.

Continuing, he declared that, “transactions related to trade in goods resulted in a smaller deficit on the goods account, decreasing by $19 million to $244 million. The decrease in the value of imported goods was reflected primarily in the imports of fuels which fell by $13 million. Imports of Finished Equipment dropped $9 million”.

Decline in revenue from exports

Revenue from the exports of goods also decreased by $1 million during the first quarter with less fuel re-exported to foreign airlines visiting Bermuda.

The minister further explained: “The surplus balance on the services account fell by $9 million and was negatively affected by movements on the travel account.”

During the first quarter, the balance on the travel account recorded a deficit of $33 million compared to a deficit of $19 million a year ago, mostly due to fewer visitors and lower expenditure. Net receipts from ICT services also fell during the period, recording a deficit balance of $11 million.

In contrast, fewer payments for construction/engineering services and a small rise in the surplus balance on accounting services helped to offset the declines. The surplus on the primary income account improved by $82 million, mostly due to an increase in reinvested earnings and net employee compensation.