In terms of the current account, both exports and imports registered a year-on-year decrease, falling by 20.6% and 28.5%, respectively. However, the decline was smaller than the previous quarter, benefiting from governments' economic stimulus efforts. Goods trade surplus increased by US$4.97 billion from the same quarter of the previous year to US$6.79 billion. The services account deficit decreased by US$0.45 billion over the year-earlier level to US$0.34 billion, mainly owing to a decrease in both freight payments for imports and travel expenses. The income account surplus went up by US$0.67 billion from the same period a year ago to US$2.37 billion on account of less payment for non-resident equity investment income. Current transfer deficit was US$0.59 billion, narrowing by US$0.08 billion from the year-ago level due to a decrease in remittances to supplement overseas families. In sum, widening surpluses in goods and income, accompanied by narrowing deficits in services and current transfers, led to a substantial increase of US$6.17 billion in the current account surplus over the same period of the previous year.

With regard to the financial account, direct and portfolio investment exhibited net outflows of US$0.61 billion and US$3.92 billion, respectively. Residents' portfolio investment abroad registered a net outflow of US$10.87 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 showed a net inflow for the second consecutive quarter with US$6.95 billion, induced mainly by foreign capital inflows to domestic stock markets and the issuance of depositary receipts abroad by local enterprises. Other investment exhibited a net inflow of US$11.03 billion, largely attributable to a decrease on foreign assets and an increase in liabilities in the banking sector.

For the first three quarters of 2009, the current account showed a surplus of US$31.10 billion, the financial account exhibited a net inflow of US$10.14billion, and the overall balance registered a surplus of US$36.47 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
February 23, 2010.
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.