Balance Of Payments & International Investment

March 23, 2021

Today the Minister for the Cabinet Office Wayne Furbert released the 2020 Q3 Balance of Payments & International Investment Position publication from the Department of Statistics.

The Minister explained, “Bermuda’s overseas trade resulted in a $201 million surplus for the third quarter of 2020, decreasing $41 million from a year ago. This decline was due mainly to a deficit balance on the travel account compared to a surplus balance a year ago.”

Minister Furbert continued, “Transactions related to trade in goods were also lower on the goods account, decreasing by $39 million to $224 million. The decrease in the value of imported goods was reflected primarily in the imports of Fuels which fell by $22 million. Imports of Finished Equipment dropped $10 million while Food, Beverages and Tobacco fell by $9 million.

“In contrast, imports of Transport Equipment increased by $6 million. Payments for imported goods from the United States of America, Bermuda’s largest trading partner, fell by $39 million. Revenue from the exports of goods also decreased by $5 million during the third quarter with less fuel re-exported to foreign airlines visiting Bermuda.”

“Our surplus balance on the services account fell $102 million and was adversely affected by movements on the travel account, which we indicated was down. During the third quarter, the balance on the travel account recorded a deficit of $22 million compared to a surplus of $141 million a year ago mostly due to fewer visitors and lower expenditure. Receipts from Information Communications and Technology [ICT] services also fell during the period. In contrast, fewer payments for engineering/construction services and a rise in the surplus balance on financial services help to offset declines.”

The Minister also said, “Bermuda’s trade in financial assets and liabilities with the rest of the world resulted in a net international investment position of $2,833 million at the end of the third quarter 2020, falling $258 million over the second quarter of 2020. Two of the four institutional sectors recorded positive balances on their net international investment positions at the end of the third quarter.

“Specifically, financial corporations recorded a balance of $5,796 million and non-profit institutions recorded a balance of $32 million. In contrast, non-financial corporations recorded a deficit balance of $2,326 million while the government recorded a deficit balance of $670 million due mostly to the issuance of new debt securities.”

“The 2020 Q3 Balance of Payments & International Investment Position publication is available online here. The public is advised to read the concepts and definitions on the last page of the publication prior to reviewing the data.”

The full BOP & IIP – 2020 Q3 Publication follows below [PDF here]:

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