BALANCE OF PAYMENTS
PRESS RELEASE Release Date: Feb. 20, 2006
BALANCE OF PAYMENTS
For the fourth quarter of 2005, the current account registered a surplus of US$9.22 billion, while the financial account recorded a net outflow of US$6.86 billion. The Bank’s reserve assets increased by US$0.63 billion, representing a decrease of US$2.27 billion over the corresponding quarter last year.
In terms of the current account, the steady expansion of the global economy led exports to grow by 14.1% over the same period last year with the highest quarterly value on record. The growth was mainly attributable to the increase in exports to neighboring Asian countries. Imports recorded the second highest quarterly value ever mainly as a result of the increases in crude oil, electronic parts, and consumer goods imports. However, with the sharp decline in capital goods imports, total imports grew by merely 0.4% over the corresponding quarter last year. Taken together, surplus on goods hit a record quarterly value of US$8.43 billion. The services account deficit decreased by US$1.19 billion over the same quarter last year to US$0.97 billion, mainly caused by increases in merchanting trade surplus and financial services receipts. Income surplus was US$2.67 billion, decreasing by US$0.32 billion from a year ago, mainly due to the increase in outward remittances of direct investment income by non-residents. Current transfer deficit dropped by US$0.36 billion from a year earlier to US$0.91 billion, mainly caused by a decrease in residents’ outward remittances to their overseas relatives. In total, despite a decrease in income surplus, an increase in surplus on goods combined with decreases in services deficit and current transfer deficit caused the current account surplus to significantly expand by US$7.48 billion over the corresponding quarter last year to US$9.22 billion, the highest value on record.
With regard to the financial account, direct investment exhibited a net outflow of US$1.92 billion while the portfolio investment exhibited a net inflow of US$2.86 billion. Portfolio investment abroad by residents posted a net outflow of US$10.41 billion. This was mainly attributable to residents’ increased investment in foreign securities through banks’ earmarked trust funds and large portfolio investment abroad by local insurance companies and banks’ offshore banking units pursuing higher returns. Portfolio investment by non-residents recorded a net inflow of US$13.27 billion. Due to the massive inflow of foreign equity funds to the domestic stock market, foreign investment in equity securities posted the highest quarterly value on record. Other investment exhibited a net outflow of US$7.8 billion, mainly due to the increase in loans extended to foreign banks and the decrease in borrowings from overseas affiliates by the banking sector.
For the year 2005 as a whole, the current account showed a surplus of US$16.37 billion, decreasing by US$2.13 billion from a year ago, and the financial account exhibited a net inflow of US$1.78 billion. The Bank’s reserve assets increased by US$20.06 billion, decreasing by US$6.54 billion compared with last year.
Tables & Graphs [ XLS ]
Notes: 1. The next balance of payments data will be released at 16:20 p.m. on May 19, 2006.
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.