BALANCE OF PAYMENTS
PRESS RELEASE Release Date: February 20, 2008
BALANCE OF PAYMENTS
For the fourth quarter of 2007, the overall balance of payments registered a surplus of US$5.24 billion, reflecting an increase in the Bank's reserve assets. The current account posted a surplus of US$11.59 billion, while the financial account showed a net outflow of US$7.13 billion.
In terms of the current account, both exports and imports reached the highest quarterly figures on record. Exports grew by 15.4% over the same period last year mainly due to an increase in exports to neighboring Asian countries. Imports grew by 14.0%, led by an increase in imports of minerals. Goods surplus increased by US$1.98 billion over the same quarter last year to US$9.96 billion. The services account deficit narrowed by US$0.26 billion over the same quarter last year to US$0.71 billion, mainly caused by an increase in net surplus from merchanting services. Income surplus increased by US$0.96 billion to US$3.31 billion mainly boosted by residents' income from direct investment. Current transfer deficit increased by US$0.06 billion from the same quarter last year to US$0.98 billion. In sum, the increased goods surplus and income surplus, together with the decreased services account deficit, caused the current account surplus to increase by US$3.14 billion or 37.1% from the same quarter last year to US$11.59 billion, the highest quarterly figure ever reported.
With regard to the financial account, the net outflow decreased substantially mainly because portfolio investment by non-residents turned from a net outflow of US$5.31 billion in the previous quarter to a net inflow of US$0.93 billion. Direct investment continued with a net outflow of US$1.96 billion. Portfolio investment showed a net outflow of US$7.15 billion, mainly due to an increase in residents' investment in foreign mutual funds, which contributed to a net outflow of US$9.58 billion in equity securities investment abroad. However, residents' external claims on debt securities investment recorded a net inflow of US$1.49 billion, reversing the net outflow in the previous quarter. Other investment exhibited a net inflow of US$2.0 billion on account of the foreign funds introduced into the domestic market by the banking sector.
For the year 2007 as a whole, the current account showed a surplus of US$31.70 billion, the financial account exhibited a net outflow of US$38.93 billion, and the overall balance registered a deficit of US$4.02 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 May 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.