Bermuda's balance of payments was an estimated $125 million in surplus on current account for 1996, $22 million or 14.9 percent less than for 1995, the Bermuda Monetary Authority (BMA) has reported.

The Authority's fourth quarterly report for 1996 also said that tourism spending fell, money leaving the Island for travel and investment funds increased and investment earnings returning to the Island rose.

Provisional estimates for the 1996 fourth quarter suggest a current account surplus of $18 million, down $1 million or 5.2 percent from the estimate for the 1995 fourth quarter.

Imports for the 1996 fourth quarter were 15 percent higher than the comparative period, due to the demand in construction materials. And for the year, there were $569 million in imports, up $18 million or 3.1 percent from last year and the highest in four years.

Residents spent $167 million during overseas travel for the year, $21 million or 4.7 percent more than in 1995. Fourth quarter figures show overseas travel expenditure rose $5 million or 12.5 percent to $45 million when compared to the 1995 fourth quarter. Investment income payments to non-residents for the three month period fell $5 million, as local subsidiaries of international companies reduced their dividend payments to their parent organisations.

Increased payments for miscellaneous commercial and telecommunications services was largely responsible for the $15-million hike in the "other goods, services and income'' category quarter over quarter.

Fourth quarter receipts for merchandise (exports) were $5 million higher.

Travel receipts, representing tourist expenditure on the Island, fell by $6 million. For all of 1996, tourist expenditure fell for the second consecutive year, down to $475 million, a drop of $50 million or 9.5 percent from $525 million in 1994.

Investment income continued to improve, rising $14 million to $131 million for the year, after a $27 million improvement in the fourth quarter to $55 million. The BMA said that was a result of higher earnings being generated by the overseas holdings of pension funds and by the banking sector.

Receipts in the "other goods, services and income'' category rose by $6 million for the quarter, reflecting increases in fees earned by local companies for services provided to non-residents.

The financial account recorded a net fourth quarter outflow of $5 million, a $21 million difference from the inflow of $16 million recorded for the same period a year before.

Direct investment outflows were $6 million higher in the fourth quarter due to increased overseas business investment by residents. There was a decrease in portfolio investment of $12 million, as local institutions invested fewer funds in non-resident securities. Other investment income increased by $8 million, representing loan repayments and purchases of real estate outside Bermuda.

But the net effect for the 1996 year is that $218 million was paid outside of the Island, a jump of 44.3 percent or $67 million from the $151 million paid out on financial account in 1995. It also represents a near 82 percent increase from the $120 million recorded for 1993 in payments for long term investments.

Meanwhile, on the receipts side of long term investments, inflows increased by $7 million for the quarter, as overseas companies have invested in local subsidiaries. Portfolio investment inflows fell by $7 million, offset by a rise of $7 million in the value of real estate transactions with non-residents.

The net short term investment inflow of $24 million was attributable to transactions shown on the aggregate balance sheets of Bermuda's banks and the BMA.

BUSINESS BUC