BALANCE OF PAYMENTS
For the first quarter of 2005, the current account registered a surplus of US$4.18 billion, while the financial account recorded a net inflow of US$7.25 billion. The Bank’s reserve assets increased by US$12.48 billion.
In terms of the current account, exports grew by 7.6% over the same period last year, mainly buoyed by exports to neighboring Asian countries. Imports hit the second highest quarterly figure on record with a year-on-year growth rate of 13.6%, mainly due to an increase in imports of capital equipment, iron and steel, crude oil and chemicals. Because imports increased by a larger amount than exports, surplus on goods shrank to US$2.72 billion, showing a decline of US$1.75 billion or 39.2% from a year earlier. The services account deficit decreased by US$0.34 billion over the same quarter last year to US$0.90 billion, mainly caused by an increase in traveling receipt and merchanting trade surplus. Income surplus was US$3.45 billion, decreasing by US$0.07 billion from a year ago. The lower surplus was mainly due to non-residents’ outward remittances of their equity investment income and an increase in interest payments on private external debt. Current transfer deficit increased by US$0.25 billion from a year earlier to US$1.08 billion, mainly caused by an increase in outward remittances to overseas relatives. In total, despite a decrease in services deficit, the narrowed surpluses on goods and income, coupled with the widened current transfer deficit, made current account surplus drop to US$4.18 billion, representing a decrease of US$1.72 billion or 29.2% over the corresponding quarter last year.
With regard to the financial account, direct investment and portfolio investment exhibited net outflows of US$1.24 billion and US$2.61 billion, respectively. Portfolio investment abroad by residents posted a net outflow of US$8.20 billion, showing the third largest outflow following the second and fourth quarters of 2003. This was mainly attributable to large portfolio investment abroad by local insurance companies pursuing higher returns and residents’ increased investment in foreign securities through banks’ earmarked trust funds. Portfolio investment by non-residents recorded a net inflow of US$5.59 billion as foreign investors continued buying domestic shares. Issuance of offshore corporate bonds by domestic enterprises decreased sharply from US$2.72 billion in the same period last year to US$0.46 billion due to rising foreign interest rates. Other investment registered a net inflow of US$11.10 billion, mainly because expectations of NT dollar appreciation led enterprises to remit home their export proceeds retained overseas and banks to reduce their lending or deposits abroad as well as bring in capital from abroad.
Notes: 1. The next balance of payments data will be released at 16:20 p.m. on August 19, 2005.
2. For the release schedule for the next six months, please check the CBC website at http://www.cbc.gov.tw/EngHome/ESDDS/calacal.asp.
Tables & Graphs [ XLS ]