BALANCE OF PAYMENTS
PRESS RELEASE Release Date: May 20, 2009
BALANCE OF PAYMENTS
For the first quarter of 2009, the current account posted a surplus of US$12.99 billion. The financial account showed a net outflow of US$1.70 billion, with a US$9.64 billion net inflow in the private sector and a US$11.34 billion net outflow in the banking sector as its overseas assets increased. The overall balance of payments registered a surplus of US$12.89 billion, reflecting an increase in the Bank's reserve assets.
In terms of the current account, as the protracted global downturn weakened external demand, exports declined by 36.6% from the same period of the previous year. Imports also shrank by 47.2%, with waning derived demand from exports and falling oil prices. The larger decrease in imports than exports led to a US$9.04 billion surplus on goods trade, US$4.77 billion more than the year-ago level. The services account turned from a US$0.01 billion deficit to a US$0.60 billion surplus over the year, mostly induced by decreases in travel expenses and freight payments for imports. The surplus in the income account was US$3.90 billion, posting a US$1.22 billion year-on-year decrease, mainly due to less income from direct investment and bank interests amid worldwide rate cuts. The current transfer deficit was US$0.54 billion, a year-on-year decrease of US$0.36 billion on decreasing outward remittances to support overseas families. Despite the narrowing income surplus, the extensive growth of the goods trade surplus boosted the current account surplus to a record high, showing an increase of US$4.52 billion or 53.3% over the same period in the previous year.
With regard to the financial account, direct investment and portfolio investment both showed net outflows with respective values of US$0.72 billion and US$3.28 billion. Affected by the global recession, residents' direct investment abroad and non-residents' direct investment both declined. Following two quarters' net inflows, residents' portfolio investment abroad showed a moderate net outflow of US$2.26 billion. As foreign investors reduced holdings of local securities, non-residents' portfolio investment continued with a net outflow but at a much smaller value of US$1.02 billion than the previous two quarters. Other investment exhibited a net inflow of US$2.19 billion on account of the repatriation of overseas deposits by the private sector.
Notes: 1. The next balance of payments data will be released at 16:20 p.m. on
August 20, 2009.
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.