BALANCE OF PAYMENTS
PRESS RELEASE Release Date: November 19, 2010
BALANCE OF PAYMENTS
For the third quarter of 2010, the overall balance of payments recorded a surplus of US$8.00 billion, reflecting an increase in the Bank's reserve assets. The current account registered a surplus of US$8.99 billion, and the financial account showed a net outflow of US$2.43 billion.
In the current account, exports grew by 27.1% in comparison with the same period of last year as a result of greater external demand supported by robust growth in emerging Asia. Imports also posted a year-on-year increase of 30.4% as derived export demand rose and private investment continued to expand. Goods trade surplus grew by US$0.27 billion to US$7.06 billion when compared to the same period of the previous year. The services account recorded a surplus of US$0.16 billion, compared to a deficit of US$0.28 billion in the same period last year. This was predominantly accounted for by growth both in the international air/sea freight proceeds of Taiwan's companies and in the net revenue of merchanting. The income account recorded a surplus of US$2.44 billion with a year-on-year increase of US$0.35 billion, mainly attributable to income increases in foreign exchange asset investment and residents' outward direct investment. Current transfer deficit widened by US$0.12 billion from the same period last year to reach US$0.67 billion. Overall, the current account surplus rose by US$0.94 billion, or 11.7%, over the same period last year, as a larger current transfer deficit was offset by increases in surpluses on goods trade, services, and income.
In the financial account, direct and portfolio investment registered net outflows of US$2.64 billion and US$10.21 billion, respectively. Residents' portfolio investment abroad exhibited a net outflow of US$8.87 billion, mainly accounted for by investment in overseas debt securities by insurance companies. Non-residents' portfolio investment posted a small net outflow of US$1.34 billion, mainly due to foreign capital outflows related to investment in domestic stock markets. Other investment exhibited a net inflow of US$10.29 billion, mainly attributable to increasing bank deposits of non-residents, capital drawn from overseas bank branches, and the withdrawal of foreign deposits by the private sector.
For the first three quarters of 2010, the current account registered a surplus of US$30.44 billion, the financial account exhibited a net inflow of US$6.18 billion, and the overall balance recorded a surplus of US$36.78 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
February 21, 2011.
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.