Bermuda's balance of payments surplus dropped by 8.5 percent last year to $204 million, according to figures released yesterday by the Bermuda Monetary Authority.

In a report of the balance of payment estimates for the year to end December 31, 1999, over $200 million more came into the country than was paid out.

Current account payments were $1.468 billion and receipts stood at $1.672 billion.

The balance of payments is the movement of goods, services and financial transactions between one country and the rest of the world.

In 1999, $1.468 billion was taken out of the country in payment of imports, shipping costs, travel, investment income and professional, managerial, technical services and other goods and services.

But the Island received payments of $1.672 billion for the same kind of goods and services.

In money terms the balance of payments is the total of all receipts from abroad and all payments to recipients abroad. All receipts and payments of whatever nature are included, whether they be payments and receipts for non-commercial purposes, such as legacies or pension, for goods sold or services rendered, for investment purposes, on behalf of the Government or of private persons and agencies.

$712 million worth of merchandise was imported -- up 11.6 percent on the year before. Exports stood at $51 million, up 35 percent on 1998, leaving a deficit of $661 million.

To bring these goods onto the Island cost $108 million, up 6.5 percent from 1998, while shipping and transportation exported out of Bermuda cost 20 million, up $4 million on the year before. The shipping and other transportation deficit estimate stands at 88 million.

In the area of travel, the Island saw $202 million brought in, while $483 was spent on the Island (noted as receipts), leaving a net balance of $271 million.

Investment income in current account payments -- the payments and receipts for immediate transaction, such as the sale of goods and rendering of services and the capital -- is listed as $43 million and as $298 million in receipts, leaving the net balance as $165 million.

The money spent on professional, manual and technical services on the current account stands at $67 million, while in receipts this sector took the highest category on the table of $775 million.

In the current account, other unspecified goods, services and income were recorded at $210 million and current transfers at $116 million.

In the receipts of other goods, services and income came in at $120 million and current transfers at $15 million.

The capital and financial account, which is made up of capital transfers, long term investment and short term investment, recorded a net outflow of $42 million in the fourth quarter and a net loss for the year of $162 million -- compared to $339 million loss the year before.

A statement from the Bermuda Monetary Authority said: "The balance of payments estimates are, to a large extent, based on estimated and historical data; they should therefore be interpreted with a suitable degree of caution.

The estimates for professional, managerial and technical services receipts have been revised in light of the findings of International Companies 1998, a study conducted by Dr. Brian Archer as a consultant to the Ministry of Finance.'' CHART BERMUDA MONETARY AUTHORITY (QUARTERLY NOTICE) BALANCE OF PAYMENTS ESTIMATES CURRENT ACCOUNT SURPLUS EFICIT