In terms of the current account, both exports and imports registered a year-on-year decrease, falling by 31.9% and 37.2%, respectively, due to the global recession. However, the decline was smaller than the previous quarter, benefiting from the gradual stabilization of the world economy supported by governments' economic stimulus efforts. Goods trade surplus increased by US$1.50 billion, or 25.1%, to US$7.47 billion when compared to the same period of the previous year. The services account recorded a surplus of US$0.57 billion, an increase of US$0.44 billion over the same period last year, driven mainly by a decrease in both travel expenses and freight payments for imports. The income account went up by US$0.85 billion from the same period of last year, a surplus of US$2.49 billion on account of lower payment for non-resident equity investment income. Current transfer deficit was US$0.62 billion, narrowing by US$0.08 billion from the same period last year due to decreased outward remittances to supplement family income. In sum, widening surpluses in goods, services and income, accompanied by a narrowing current transfer deficit, led the current account to increase by US$2.87 billion, or 40.8%, over the same period last year.

With regard to the financial account, direct and portfolio investment exhibited small net outflows of US$0.80 billion and US$1.10 billion, respectively. Residents' portfolio investment abroad registered a net outflow of US$9.79 billion, mainly attributable to an increase in residents' investment in foreign mutual funds and more bond investment abroad by local insurance companies. Non-residents' portfolio investment turned into a net inflow of US$8.68 billion after showing net outflows in the past year, induced mainly by foreign capital inflows targeting at domestic stock and bond markets. Other investment exhibited a net inflow of US$6.03 billion, attributable to the withdrawal of overseas deposits by the private sector.

For the first half of 2009, the current account showed a surplus of US$22.59 billion, the financial account exhibited a net inflow of US$3.88 billion, and the overall balance registered a surplus of US$24.71 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, 2009.
2. For the release schedule for the next six months, please check the CBC website at http://www.cbc.gov.tw/ct.asp?xItem=30164&ctNode=515&mp=2.