Bermuda To Maintain Large Current Account Surplus In Years Ahead On Primary Income, Rebounding Tourism

• Bermuda will continue to run a substantial current account surplus in the years ahead on the strength of its primary income surplus. It is forecasted that Bermuda will run a current account surplus of 14.9% of GDP in 2021, largely unchanged from the 15.2% in 2020 and in line with the 14.0% average from 2015 to 2019. 
• Bermuda’s large primary income surplus is the main driver of its persistent current account surplus, which was the fourth-largest in the world in 2020. 
• A larger goods trade deficit will account for the modest decline in the current account surplus in the quarters ahead, as rebounding economic activity spurs goods import demand. 
• However, recovering tourism activity, particularly in H2 2021, will boost service exports, partially offsetting the wider goods trade deficit.

(Source: Fitch Solutions)