BALANCE OF PAYMENTS （Q1 2024）

For the first quarter of 2024, the overall balance of payments registered a current account surplus of US$29.11 billion, a net asset increase of US$29.19 billion in the financial account, and a decrease of US$0.33 billion in the Bank's reserve assets.

I. Current Account

The current account surplus increased by US$9.91 billion over the same quarter of the previous year.

1. The goods trade surplus widened by US$12.31 billion year on year to US$24.31 billion. This was mainly because exports rose on the back of rising demand for emerging technology applications such as artificial intelligence and high-performance computing.

2. The services account deficit rose from US$1.60 billion a year ago to US$2.54 billion mainly owing to an increase in travel expenditures.

3. Primary income surplus narrowed by US$1.42 billion year on year to US$8.53 billion, mainly because of an increase in outward payments for nonresidents' portfolio investment income.

4. The secondary income deficit slightly widened by US$0.05 billion over the same period of the previous year to US$1.19 billion.

II. Financial Account

1. The direct investment account posted a net asset increase of US$2.24 billion. Of the components, outward direct investment by residents and inward direct investment by nonresidents recorded net increases of US$3.57 billion and US$1.34 billion, respectively.

2. The portfolio investment account registered a net asset increase of US$18.08 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$23.06 billion mainly owing to a rise in residents' holdings of overseas debt securities. Nonresidents' portfolio investment recorded a net increase of US$4.99 billion mainly because of expanded Taiwanese equity holdings by foreign investors.

3. The financial derivatives account posted a net asset increase of US$0.51 billion, mainly owing to a decrease in liabilities as other financial institutions paid for gains on disposal of financial derivatives.

4. The account of other investment recorded a net asset increase of US$8.37 billion mainly reflecting a decrease in liabilities as nonresidents' deposits with banks shrank.

Notes:

1. The next release of balance of payments data will be at 16:20 on August 20, 2024.

2. For the release schedule for the coming months, please refer to the Advance Release Calendar on the Bank's website.