In terms of the current account, external demand supported by the global economic recovery and a lower base effect have led to a year-on-year increase of 50.4% in exports, while imports posted an annual growth rate of 59.7% due to rising export-derived demand and the upswing in private investment. Goods trade surplus grew by US$0.01 billion to US$7.50 billion when compared to the same period of the previous year. The services account recorded a surplus of US$0.52 billion, a slight decline of US$0.09 billion over the same period last year, mainly because the increase in payments to use of intangible assets and trade-related services was greater than the rise in net proceeds from merchanting services.

The income account registered a surplus of US$3.31 billion, representing an increase of US$0.56 billion from a year ago, mainly due to higher income earned from residents' foreign exchange assets and direct investment. Current transfer deficit was US$0.77 billion, widening by US$0.21 billion from the same period last year. In sum, the current account surplus rose by US$0.27 billion over the same period last year, as a smaller surplus on services and a larger current transfer deficit were offset by increases in surpluses on goods trade and income.
With regard to the financial account, direct and portfolio investment registered net outflows of US$2.15 billion and US$7.60 billion, respectively. Residents' portfolio investment abroad exhibited a net outflow of US$8.77 billion, mainly because of a significant increase in residents' investment in foreign mutual funds. Non-residents' portfolio investment posted a net inflow of US$1.17 billion, mainly due to foreign capital inflows for investment in domestic stock markets. Other investment exhibited a large net inflow of US$15.33 billion, mainly attributable to a decrease in external interbank lending and capital drawn from affiliated overseas branches by the banking sector.

For the first half of 2010, the current account showed a surplus of US$20.86 billion, the financial account exhibited a net inflow of US$8.58 billion, and the overall balance registered a surplus of US$28.78 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 19, 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