In the current account, robust growth in emerging Asia continued to bolster Taiwan's Q4 exports to a historical high, growing by 20.9% from the same period last year. Imports rose year on year by 26.2% due to increases in derived export demand and the international prices of crude oil and other raw materials. Goods trade surplus narrowed to US$5.82 billion, representing a year-on-year decrease of US$1.28 billion as the greater growth in imports outpaced exports. The services account reached a quarterly record with a surplus of US$2.07 billion, mainly attributable to increases in net proceeds from merchanting services and travel receipts.

The income account narrowed by US$0.98 billion from the same period of the previous year to record a surplus of US$2.80 billion, mainly due to higher income from non-residents' portfolio investment and lower income from residents' outward direct investment. Current transfer deficit was US$0.59 billion, widening by US$0.14 billion from the same period last year. Overall, the current account surplus declined by US$1.35 billion, or 11.8%, over the same period last year, as a result of a larger current transfer deficit and smaller surpluses on goods trade and on income despite the service account’s record surplus.
In the financial account, direct and portfolio investment registered net outflows of US$2.80 billion and US$0.45 billion, respectively. Residents' portfolio investment abroad exhibited a net outflow of US$10.51 billion, mainly accounted for by investment in overseas debt securities by insurance companies and overseas mutual funds investment by residents. Non-residents' portfolio investment posted a net inflow of US$10.07 billion, mainly due to foreign capital inflows for investment in domestic stock and bond markets. Other investment exhibited a net outflow of US$3.43 billion, mainly attributable to increases in foreign lending by the banking sector.

For the whole year of 2010, the current account registered a surplus of US$40.62 billion, the financial account exhibited a small net outflow of US$0.61 billion, and the overall balance recorded a surplus of US$40.17 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
May 20, 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.