Update: November 10, 2021 at 7:45 a.m.
The balance of payments figures released by the government show a current account surplus of $ 313 million in the second quarter of 2021, an increase of $ 37 million year over year.
The growth in the surplus reflected an increase in the inflow of foreign exchange to the island – the receipts from non-residents which were more important than the increase in payments, said Cabinet Office Minister Wayne Furbert.
The minister released the Statistics Department’s publication Balance of payments and international investment position for the second quarter of 2021.
Bermuda asset account transactions resulted in a net lending position of $ 351 million.
Factors influencing this year-over-year performance include the fact that Bermuda’s net acquisition of financial assets resulted in an increase of $ 1 billion compared to a decrease of $ 130 million last year. .
The island increased its net financial liability commitments by $ 838 million this quarter, compared to a decrease of $ 289 million in 2020.
With the exception of the goods account, all major sub-accounts recorded improvements in their net balances thanks to an increase of $ 80 million in the surplus of the primary income account.
The primary income account reflects the balances of remuneration earned / paid to non-residents, as well as investment income and taxes on wages paid by non-resident companies to the government.
Year over year, the surplus in the primary income account increased by $ 80 million in the second quarter of this year.
This increase primarily reflects an increase in net employee compensation of $ 60 million. Net investment income increased by $ 14 million while the net excess balance on other income increased by $ 6 million.
Year over year, the goods account deficit widened by $ 58 million to $ 237 million. Most of the $ 58 million translated into a $ 42 million increase in goods imported from the United States.
Among product groups, the growth was mainly reflected in imports of finished equipment (+ $ 17 million), chemicals (+ $ 11 million) and machinery (+ $ 10 million). Imports of all other product groups also increased.
Services transactions posted a surplus of $ 72 million, up $ 19 million year-over-year in the second quarter of this year. The higher surplus balance mainly reflects the improvement in travel and business services.
The travel services deficit narrowed by $ 19 million due to increased spending by visitors to Bermuda.
The surplus on business services increased by $ 16 million as a result of transactions in accounting services, legal services and premiums collected for direct insurance services.
Bermuda’s primary income account surplus increased by $ 80 million to $ 511 million in the second quarter of 2021.
Bermuda’s net international investment position increased to $ 4.9 billion.
At the end of the second quarter, the stock of foreign assets held by residents of Bermuda stood above the stock of foreign liabilities by an estimated $ 4.9 billion.
The net international investment position increased by $ 877 million in the first quarter of the year.
Foreign assets reached $ 18.3 billion.
Between the first and second quarters of 2021, the stock of foreign financial assets of Bermuda residents increased by $ 1.7 billion mainly due to increased holdings of loans and debt securities.
Bermuda’s liability position increased to $ 13.4 billion as the stock of foreign liabilities of Bermuda residents increased by $ 847 million from the first quarter of 2021.
The increase in the debt position mainly reflected an increase in foreign currency liabilities and deposits as well as investment funds held by resident institutions and owed to non-residents.
The international investment position of resident institutional sectors shows that non-financial corporations held a net debt position of $ 2.2 billion with the rest of the world at the end of the second quarter.
The general government sector’s external liabilities exceeded its external assets by $ 78 million, representing a lower negative net investment position due to an increase in portfolio investment assets.
Financial corporations held a net asset position of $ 7.1 billion mainly due to holdings in portfolio investments in the form of debt securities and other investments in the form of currencies and deposits.
Nonprofit institutions serving households also recorded net assets of $ 44 million at the end of the second quarter.
Bermuda’s current account posted a surplus of $ 313 million in the second quarter of 2021 (Graphic: Department of Statistics)
Current account receipts 2021 (Graphic: Department of statistics)