Bermuda's balance of payments recorded a surplus of about $43 million in the second quarter of 2004 - a strong jump on the $35 million surplus in that same period in 2003.

For the first six months of the year, the trend appears to be even better with a surplus of $53 million being recorded in that period compared to a slim $16 million during the first half of 2003.

The good news was revealed in the balance of payment figures - considered an important indicator of the Island's economic health - for the three-month April through June period released yesterday by the Bermuda Monetary Authority (BMA).

During the quarter, the Island did lodge an increase in both payments and receipts, but an increase of $13 million in outflow was more than cancelled out by the $21 million increase in total receipts.

Looking at money that went out of the local economy, merchandise (imports) rose marginally year-on-year to $236 million from $235 million in 2003.

However, shipping and transportation costs grew by $7 million to $34 million compared to $27 million the year before. Other payments were fairly consistent year on year. Travel generated payments of $51 million and $50 million were recorded in each period while investment income paid out was relatively flat at $20 million in 2004 compared to $19 million in the second quarter of 2003.

Professional management and technical service payments stood at $31 million, up on the $29 million in this type of payment for the same period in 2003. And other goods and service costs declined to $81 million in the second quarter of 2004 from $84 million in 2003.

Current transfers stood at $58 million during the period, slightly up on $54 million in 2003.

The total economic spend for the period was $511 million, $13 million more than the $498 million recorded for payments a year prior.

On the receipt side, the economy saw an inflow of $21 million more than 2003 with about $554 million recorded during the period compared to $533 million during same period of 2003.

Most notably, there was strong growth in investment income with $91 million taken in compared to $60 million during that period a year prior.

But travel - largely from tourism - saw a shift in the opposite direction, with receipts standing at $141 million in the second quarter of 2003 compared to the much more paltry $116 million for that period in 2004.

The level of receipts for merchandise (exports) also slipped to $5 million compared to $16 million a year before.

But professional management and technical services receipts grew to $292 million from $273 million, year on year. And other goods services and income posted a $6 million increase, growing from $34 million to $41 million, year on year.

Receipts for shipping and transportation were constant from period to period at $4 million, while transfers stood at $5 million in each quarter respectively.

The BMA said capital and financial accounts, which comprise capital transfers, long-term investment and short term investment recorded an estimated outflow of $53 million in the second quarter. Of this, $43 million was said to be largely attributable to overseas investments made by residents.

This may have been in part due to former Bank of Bermuda shareholders reinvesting the funds they got from the sale, with the $1.3 billion sale to banking giant HSBC Plc in February bringing in about $900 million to Bermuda-based investors.