Bermuda recorded a current account surplus of $120 million in the first quarter of 2010, down some $61 million from the same period last year, according to the latest statistics released by Government.

The fall in the surplus, which reflects the balance of transactions between Bermuda residents and entities and overseas parties, is attributable to a decline in receipts and an increase in payments for goods and services.

Meanwhile, the Department of Statistics' Balance of Payments report also revealed that $243 million was spent on imported goods — a marginal increase of $1 million year-over-year.

The figures showed expenditure on imported machinery and food registered the largest increases of $4.1 million and $1.3 million respectively. The growth was offset, however, by declines in the imports of basic materials, transport equipment, finished equipment and chemicals. Bermuda's exports remained unchanged at $5 million for the same period, meaning the Island's goods account deficit for the quarter was $238 million.

A more significant deterioration was witnessed in Bermuda's financial, capital and reserve assets accounts, which recorded a net inflow of $121 million — down from $660 million in the same quarter last year. This performance was due largely to the drop in net inflow for financial account transactions — or transactions associated with changes of ownership in foreign financial assets and liabilities of the economy.

Receipts from services rose seven percent to $313 million — with business services alone increasing $13 million over last year.

A decline was also registered in Bermuda's income account, with its surplus falling by $68 million to $283 million in the first quarter. The report noted this decline was largely due to a $29 million decrease in investment income during the quarter.