Bermuda’s surplus on trade falls to $161m

Created: May 24, 2023 07:57 AM (Updated: May 24, 2023 03:28 PM)

Bermuda’s trade in financial assets and liabilities with the rest of the world resulted in a net international investment position of $4.3 billion at the end of the fourth quarter of 2022. (Photograph by Akil Simmons)

New government figures show the Bermuda current account recording a surplus on trade with non-residents of $161 million in the fourth quarter of 2022, representing a $64 million decrease year-over-year.

The 2022 Q4 Balance of Payments & International Investment Position publication was prepared by the Department of Statistics and released by the Ministry of Economy and Labour.

Outlining contributing factors, Jason Hayward, the Minister of Economy and Labour, said: “Transactions related to trade in goods led to a broader deficit on the goods account, increasing by $25 million to $324 million. Higher imports were mainly associated with food, beverages, tobacco and finished equipment.”

Mr Hayward added: “Services transactions realised a surplus of $45 million, narrowing $43 million year-over-year.

“The decrease in the surplus balance reflected declines in the business services account and transportation account balance. The surplus on Bermuda’s primary income account rose by $12 million to $494 million, due mainly to an increase in net employee compensation.”

The minister added: “Bermuda’s trade in financial assets and liabilities with the rest of the world resulted in a net international investment position of $4.3 billion at the end of the fourth quarter of 2022.

“This balance increased by $569 million over the third quarter of 2022 due to decreased liabilities of portfolio investments, specifically debt securities. Two of the four institutional sectors recorded positive balances on their net international investment positions at the end of the fourth quarter.

“Specifically, financial corporations recorded a balance of $6.7 billion and non-profit institutions recorded a balance of $28 million. In contrast, non-financial corporations recorded a deficit balance of $2.0 billion.

“The government sector recorded a deficit balance of $415 million due to a decline in portfolio investment liabilities and an increase in portfolio investment assets.”

• The 2022 Q4 Balance of Payments & International Investment Position publication is available at https://www.gov.bm/balance-payments