News Release: HAMILTON, Bermuda – Bermuda’s trade with non-residents resulted in a $248 million surplus for the fourth quarter of 2020, increasing $20 million from a year ago,” said the Minister for the Cabinet Office Wayne Furbert released the 2020 Q4 Balance of Payments & International Investment Position report.
The Minister said the increase was mainly due to a larger surplus on the primary income account.
Minister Furbert continued: “Transactions related to trade in goods resulted in a smaller deficit on the goods account, decreasing by $12 million to $250 million. The decrease in the value of imported goods was reflected primarily in the imports of Fuels which fell by $11 million. Imports of Finished Equipment dropped $5 million while Transport Equipment and Machinery fell by $2 million each. Revenue from the exports of goods also decreased by $2 million during the fourth quarter with less fuel re-exported to foreign airlines visiting Bermuda.”
The Minister further explained: “The surplus balance on the services account fell by $33 million and was negatively affected by movements on the travel account. During the fourth quarter, the balance on the travel account recorded a deficit of $19 million compared to a surplus of $47 million a year ago mostly due to fewer visitors and lower expenditure.
“Net receipts from ICT services also fell during the period, recording a deficit balance of $13 million. In contrast, fewer payments for engineering/construction services and a small rise in the surplus balance on financial services help to offset declines.
“Bermuda’s trade in financial assets and liabilities with the rest of the world resulted in a net international investment position of $4,657 million at the end of the fourth quarter 2020. This balance grew $1,849 million over the third quarter of 2020 due mostly to increased holdings of currency and deposits by financial institutions. 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 $6,827 million and non-profit institutions recorded a balance of $28 million. In contrast, non-financial corporations recorded a deficit balance of $1,602 million while the government recorded a deficit balance of $596 million, which narrowed slightly due to a rise in portfolio investment assets.”
The 2020 Q4 Balance of Payments & International Investment Position publication is available online at https://www.gov.bm/balance-payments. The public is advised to read the concepts and definitions on the last page of the publication prior to reviewing the data.