In terms of the current account, both exports and imports registered record quarterly high. Exports grew by 18.4% from the same period of the previous year, supported by a steady increase in exports to neighboring Asian countries. Import growth was 18.8% over the same period last year due to a substantial increase in imports of oil and other mining products, steel material and products. Goods trade surplus increased by US$0.76 billion, or 15.0%, to US$5.82 billion when compared to the same period of the previous year. The services account deficit narrowed by US$0.81 billion over the same period last year to US$0.28 billion, driven mainly by an increase in net surplus from merchanting services. The surplus in the income account went down by US$1.24 billion from the same period last year to record at US$1.65 billion, mainly due to foreign financial institutions’ outward remittance of earnings. Current transfer deficit was US$0.70 billion, narrowing by US$0.26 billion from the same period last year. In sum, widening goods surplus and narrowing services and current transfer deficits offset the shrinking income account surplus, leading the current account to register a surplus of US$6.49 billion, an increase of US$0.58 billion, or a 9.9% rise, over the same period last year.

With regard to the financial account, both direct and portfolio investment showed net outflows, amounting to US$1.52 billion and US$10.75 billion, respectively. Residents’ portfolio investment abroad continued to register a net outflow of US$7.14 billion, primarily owing to increased investment abroad by life insurance companies. Non-residents' portfolio investment turned into a net outflow of US$3.61 billion, induced by trimmed foreign investment in local stock market. Other investment exhibited a net inflow of US$13.14 billion, attributable to the introduction of foreign funds and the decrease of deposits in affiliated overseas branches by the banking sector.

For the first half of this year, the current account showed a surplus of US$14.99 billion, the financial account exhibited a net inflow of US$1.79 billion, and the overall balance registered a surplus of US$15.91 billion, reflecting an increase in the Bank's reserve assets.

Notes: 1. The next balance of payments data will be released at 16:20 p.m. on November 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.