BALANCE OF PAYMENTS
PRESS RELEASE Release Date: November 20, 2007
BALANCE OF PAYMENTS
For the third quarter of 2007, the current account registered a surplus of US$6.02 billion, the financial account recorded a net outflow of US$13.8 billion, and the overall balance registered a deficit of US$7.73 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 9.8% over the same period last year mainly due to an increase in exports to neighboring Asian countries. Imports grew by 9.6%, led by an increase in imports of minerals. Goods surplus increased by 0.74 billion over the same quarter last year to US$7.4 billion. The services account deficit widened by US$0.67 billion over the same quarter last year to US$1.74 billion, mainly caused by an increase in trade-related services payment and in professional and technical services payment. Income surplus decreased by US$0.11 billion to US$1.34 billion, as dividends distributed by local listed companies boosted non-residents' outward remittances of equity security investment income. Current transfer deficit increased by US$0.15 billion from the same quarter last year to US$0.98 billion. In sum, the decreased income surplus, together with the increased services account deficit and current transfer deficit, caused the current account surplus to decrease by US$0.19 billion or 3.0% from the same quarter last year to US$6.02 billion.
With regard to the financial account, direct investment and portfolio investment recorded net outflows of US$1.46 billion and US$13.97 billion, respectively. Portfolio investment abroad by residents registered a net outflow of US$8.66 billion, mainly attributable to an 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 outflow of US$5.31 billion, the highest quarterly outflow on record, mainly because foreign investors sold their holdings in the local stock market to meet liquidity demands arising from the impact of the U.S. subprime loan crisis. Financial derivatives registered a net inflow of US$0.03 billion. Other investment exhibited a net inflow of US$1.6 billion on account of the foreign funds introduced into the domestic market by the banking sector.
For the first three quarters of this year, the current account showed a surplus of US$19.93 billion, the financial account exhibited a net outflow of US$31.85 billion, and the overall balance registered a deficit of US$9.26 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 February 20, 2008.
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.