BALANCE OF PAYMENTS (Q2 2021)

For the second quarter of 2021, the overall balance of payments registered a current account surplus of US$28.04 billion, a net asset increase of US$25.07 billion on the financial account and an increase of US$3.62 billion in the Bank's reserve assets.

I. Current Account

The current account surplus increased by US$7.02 billion over the same quarter of the previous year.

1. The goods trade surplus expanded by US$5.97 billion year on year to US$22.17 billion, mainly bolstered by a gradual recovery in the global economy and sustained demand for remote working-related products and emerging technology applications.

2. The services account recorded a surplus of US$2.52 billion, growing by US$1.58 billion compared to the same quarter of the previous year, mainly reflecting an increase in freight proceeds.

3. Primary income surplus shrank by US$0.69 billion year on year to US$3.92 billion, mainly because of a decrease in banks' overseas interest income and an increase in nonresidents' income from direct investment.

4. The secondary income account deficit narrowed by US$0.16 billion year on year to US$0.56 billion mainly owing to an increase in proceeds from gifts and samples.

II. Financial Account

1. The direct investment account recorded a net asset increase of US$1.67 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors exhibited net increases of US$3.14 billion and US$1.47 billion, respectively.

2. Portfolio investment registered a net asset increase of US$22.93 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$22.16 billion, mainly because of increased investment in overseas debt securities by insurance firms and the banking sector. Nonresidents' portfolio investment recorded a net decrease of US$0.76 billion mainly owing to a reduction in local stock holdings by foreign investors.

3. Financial derivatives showed a net asset decrease of US$1.28 billion, mainly reflecting an asset decrease owing to gains from disposal of financial derivatives by other financial institutions.

4. Other investment exhibited a net asset increase of US$1.75 billion mainly owing to an increase in banks' deposits with overseas branches and other banks.

III. Overview of BOP (Q1 - Q2, 2021)

For the first two quarters of 2021, the overall balance of payments posted a current account surplus of US$54.16 billion, a net asset increase of US$40.66 billion on the financial account, and an increase of US$14.17 billion in the Bank's reserve assets.

Notes:

1. The next balance of payments data will be released at 16:20 on November 19, 2021.
2. For the release schedule for the coming months, please visit the Bank's website at Advance Release Calendar.