While global economic struggles have led to widespread belt-tightening around the world this year, Bermuda residents have been spending much more on imported goods.

Government figures released this week show the Island's current account surplus plunged by 54 percent in the three months of this year, as $346 million worth of foreign goods were imported, compared to $277 million in the same period last year.

Balance of payments figures for the first quarter showed that the Island's goods trade deficit widened to $340 million — a 26 -percent rise from the same period last year.

Bermuda had a $114 million current account surplus in the January to March period, indicating that the Island sold more goods and services to the rest of the world than it bought from overseas.

And even though receipts climbed by around $42 million, year on year, to $962 million for the first quarter, that was not sufficient to offset the $176 million increase in expenditure.

Spending by residents on services increased by $17 million to $269 million, with a large portion of the increase coming in the travel sector. Rising airfares did not put off residents from flying, as more trips abroad were made and expenditure on travel rose $10 million to $66 million.

Business services sold by Bermuda companies and individuals to the rest of the world totalled $284 million, an increase of $22 million from the same period last year, and recorded a surplus of $179 million.

Another big earner for the Island economy was employee compensation, which showed a surplus of $321 million, up from $299 million in the first quarter of 2007.

Services transactions overall showed a surplus of $99 million.

The Island's financial account, which reflects change in ownership of foreign financial assets and liabilities, showed a net outflow of $270 million for the quarter, more than double the 2007 first-quarter outflow.