In terms of the current account, exports rose by 52.8% from the same period of the previous year, bolstered by a recovering world economy in addition to a lower base effect; imports surged by 78.2% year on year, reflecting an increase in imports of agricultural and industrial raw materials and capital equipment to meet export-derived demand. As a result of a greater increase in imports over exports, goods trade exhibited a narrower surplus of US$6.05 billion, a decrease of US$3.11 billion from the same period last year.

The services account turned into a deficit of US$0.27 billion, compared to a surplus of US$0.31 billion a year ago, mainly due to an increase in payments to trade-related services, travel and use of intangible assets. The income account surplus edged up to US$4.87 billion, a year-on-year increase of US$0.97 billion mainly attributable to greater income from resident direct investment. Current transfer deficit widened by US$0.18 billion from a year ago to reach US$0.73 billion, mainly due to more outward remittances by residents to support their overseas relatives. In sum, a narrower surplus in goods, a shift in services from surplus to deficit and the widening current transfer deficit, despite a growing surplus on the income account, brought down the level of the current account surplus to post a decline of US$2.90 billion over the same period of the previous year.

With regard to the financial account, direct and portfolio investment exhibited small net outflows of US$0.95 billion and US$2.63 billion, respectively. Residents' portfolio investment abroad registered a net outflow of US$5.25 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 of US$2.62 billion, induced primarily by foreign capital inflows targeting domestic stock and government bond markets. Other investment exhibited a net inflow of US$5.96 billion, largely attributable to the withdrawal 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, 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