Each Bermuda resident's share of the Government debt is predicted to rise from $4,300 to $9,900 by the end of the year according to a new report.

The Department of Statistics released a report yesterday stating public debt ratio is expected to reach ten percent in the next six months.

It also revealed the current account surplus rose by $65 million, to $320 million, when compared to the same period as 2008.

Part of the reason for the surplus in the current account is less was spent on purchasing overseas goods, something that can indicate a shrinking economy.

The balance of payments report covers all economic transactions between Bermuda and the rest of the world.

It stated: "Despite a decline in receipts, the current account recorded a larger surplus in the first quarter of 2009 as payments declined at a faster rate than receipts.

"A surplus of $320 million was recorded in 2009 compared with $255 million in 2008."

Payments for importing goods fell 22 percent, to $242 million, when compared to last year — the lowest level since the first quarter in 2005, according to the report.

Income receipts also fell by $118 million and investment income declined by $147 million.

The report also focused on the public debt, and showed that Bermuda's public debt to gross domestic product ratio in 2008 was seven percent compared to four percent in 2007.

Public debt is a Government obligation that results from borrowing when tax revenue is insufficient to finance Government expenditure.

"The public debt picture, while not alarming, is starting to exhibit a predictable pattern," the report said. "The ratio is lower than the debt ratio of Bermuda's major trading partners and other Caribbean countries.

"However considering that this ratio previously stood at four percent in 2007 and with a projected decline in GDP for 2009, the debt to GDP ratio is estimated to climb to ten percent at the end of the year," the Department of Statistics release stated.

"Therefore, each resident's share of the public debt is expected to grow from approximately $4,300 to $9,900 in the two-year span 2007-2009."

The report said that increased borrowing is popular during recessionary periods because it provides the Government with funds to stimulate investment and employment.