BALANCE OF PAYMENTS
PRESS RELEASE Release Date: November 21, 2011
BALANCE OF PAYMENTS
For the third quarter of 2011, the overall balance of payments recorded a deficit of US$3.46 billion, reflecting a decrease in the Bank's reserve assets. The current account registered a surplus of US$10.21 billion, and the financial account showed a net outflow of US$11.57 billion.
In the current account, both exports and imports posted slower annual growth. Besides a higher base effect, export growth was dented by a global economic slowdown, while import growth declined due to fewer capital goods imports. As growth of exports outpaced that of imports, goods trade surplus widened by US$0.80 billion to US$7.71 billion when compared to the same period of the previous year. The services account recorded a surplus of US$0.93 billion with an increase of US$0.65 billion from the same period last year. This was mainly due to gains in net proceeds from merchanting.
The income account recorded a surplus of US$2.21 billion, representing a year-on-year decrease of US$0.35 billion, mainly attributable to increased payments for non-residents' dividend income. Current transfer deficit was US$0.64 billion after a slight narrowing by US$0.06 billion from the same period last year. In sum, for the third quarter of 2011, the current account surplus rose by US$1.15 billion, or 12.7%, over the same period last year, as a smaller income account surplus was offset by increases in surpluses on goods trade and services, as well as a narrower current transfer deficit.
In the financial account, direct and portfolio investment registered net outflows of US$3.96 billion and US$14.70 billion, respectively. Residents' outward direct investment exhibited a net outflow of US$2.74 billion, while the inward direct investment turned into a net outflow of US$1.22 billion, mostly accounted for by the sale of A.I.G.'s local unit, Nan Shan Life Insurance, to Ruen Chen Investment Holding. Residents' portfolio investment abroad showed a net inflow of US$1.56 billion, mainly due to share redemption of overseas mutual funds on concerns about the sovereign debt crisis in the US and Europe. Non-residents' portfolio investment posted a net outflow of US$16.26 billion, the largest single quarter net outflow ever recorded. The primary factor was that foreign investors reduced their holdings in domestic stock and government bond markets. Other investment exhibited a net inflow of US$6.81 billion, mainly attributable to increases in foreign borrowing by the banking sector, and the withdrawal of overseas deposits by the private sector.
For the first three quarters of 2011, the current account registered a surplus of US$29.21 billion, the financial account exhibited a net outflow of US$19.16 billion, and the overall balance recorded a surplus of US$6.03 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 20, 2012.
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.