BALANCE OF PAYMENTS
PRESS RELEASE Release Date: August 20, 2007
BALANCE OF PAYMENTS
For the second quarter of 2007, the current account registered a surplus of US$4.98 billion, the financial account recorded a net outflow of US$7.17 billion, and the overall balance registered a deficit of US$1.89 billion, reflecting a decrease in the Bank's reserve assets.
In terms of the current account, both exports and imports reached the highest quarterly figures on record. Exports grew by 6.6% over the same period last year mainly due to an increase in exports to neighboring Asian countries. Imports grew by 7.3%, led by an increase in imports of steel, iron, and other metals. Goods surplus increased slightly by 0.01 billion over the same quarter last year to US$4.88 billion. The services account deficit widened by US$0.41 billion over the same quarter last year to US$1.78 billion, mainly caused by a decrease in merchanting trade surplus and an increase in professional and technical services payment. Income surplus increased by US$0.69 billion to US$2.83 billion, mainly due to higher income from residents’ foreign exchange assets and greater interest earnings of banks’ offshore banking units (OBUs). Current transfer deficit decreased by US$0.17 billion from the same quarter last year to US$0.96 billion. In sum, a widened income surplus and a decreased current transfer deficit caused the current account surplus to increase by US$0.47 billion or 10.3% from the same quarter last year to US$4.98 billion.
With regard to the financial account, direct investment and portfolio investment recorded net outflows of US$0.28 billion and US$7.06 billion, respectively. Portfolio investment abroad by residents registered a net outflow of US$17.21 billion, the highest figure on record. The outflow was mainly attributable to a sharp increase in residents' investment in foreign mutual funds and higher portfolio investment abroad by local insurance companies pursuing higher returns. Portfolio investment by non-residents recorded a net inflow of US$10.15 billion, mainly because foreign investors increased their holdings in the local stock market. Financial derivatives registered a net inflow of US$0.13 billion. Other investment exhibited a net inflow of US$0.05 billion, primarily on account of the decrease in foreign currency deposits and the increase in short-term borrowings abroad by the private sector, and the increase in the Bank's repurchase agreement transactions aiming to enhance the returns from foreign exchange reserves management.
For the first half of this year, the current account showed a surplus of US$13.63 billion, the financial account exhibited a net outflow of US$17.51 billion, and the overall balance registered a deficit of US$1.52 billion, reflecting a decrease in the Bank's reserve assets.
Tables & Graphs [ XLS ]
Notes: 1. The next balance of payments data will be released at 16:20 p.m. on November 20, 2007.
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.