Bermuda’s Q2 2023 Financial Statement: A Blend of Gains and Shortfalls

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Bermuda’s Ministry of Economy and Labour has released the Q2 2023 Balance of Payments & International Investment Position report, revealing a current account surplus of $357 million. This figure, while still significant, marks a $25 million decrease compared to the same quarter of the previous year. The report offers an in-depth analysis of the island’s international economic transactions and sheds light on the financial dynamics at play.

Goods Account and Services Account

The report underscores a $1 million increase in the deficit on the goods account, which now stands at $310 million. This growth in deficit is attributed to higher imports in several commodity groups, including finished equipment, transport equipment, and consumer goods such as food, beverages, tobacco, and clothing. Contrarily, the island’s services transactions recorded a surplus of $194 million, reflecting an increase of $58 million from the previous year. This positive shift is predominantly due to growth in the travel services account.

Primary Income Account and International Investment Position

Despite the encouraging figures above, the surplus on Bermuda’s primary income account experienced a drop. The account fell by $92 million to $516 million, primarily due to a decrease in investment income. Evaluating Bermuda’s net international investment position, the report indicates a figure of $3.9 billion at the end of Q2 2023. This represents an increase of $106 million from the first quarter, a development largely credited to reduced liabilities in portfolio investments.

Sector-wise Financial Performance

The financial corporations sector in Bermuda demonstrated a positive balance of $6.4 billion. Similarly, non-profit institutions reported a balance of $27 million. In stark contrast, non-financial corporations and the government sector recorded deficit balances of $2.1 billion and $409 million, respectively. However, the government sector’s deficit showed signs of improvement due to increased assets in portfolio and other investments.

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