BALANCE OF PAYMENTS
PRESS RELEASE Release Date: February 20, 2012
BALANCE OF PAYMENTS
For the fourth quarter of 2011, the overall balance of payments recorded a surplus of US$0.21 billion, reflecting an increase in the Bank's reserve assets. The current account registered a surplus of US$12.10 billion, and the financial account showed a net outflow of US$12.28 billion.
In the current account, exports grew by only 4.3% year on year due to a higher base effect, a global economic slowdown, and the European sovereign debt crisis. Imports posted an annual growth rate of -0.2% due to fewer capital goods imports on corporate pessimism about business prospects. As exports increased but imports declined, goods trade surplus widened by US$3.29 billion to US$8.94 billion when compared to the same period of the previous year.
The services account registered record quarterly highs both on the debit and credit sides, mainly due to greater travel receipts and increased expenditures of trade commissions and miscellaneous business, professional, and technical services. The services account exhibited a surplus of US$1.31 billion, the second highest quarterly record ever registered, with a year-on-year decrease of US$0.42 billion. Meanwhile, the income account posted a surplus of US$2.41 billion, declining by US$0.24 billion from the same period last year, mainly attributable to lower income from investment in foreign asset. Current transfer deficit narrowed slightly by US$0.02 billion from the same period last year to reach US$0.57 billion. In sum, shrinking surpluses in the services and income accounts were offset by a wider goods trade surplus and a narrower current transfer deficit. For the fourth quarter of 2011, the current account surplus registered the second highest quarterly figure on record with an increase of US$2.65 billion, or 28.1%, over the same period last year.
In the financial account, direct and portfolio investment registered net outflows of US$3.53 billion and US$0.54 billion, respectively. The net inflow of US$1.23 billion in residents' portfolio investment abroad was mostly accounted for by share redemption of overseas equities investment on concerns about the protracted European sovereign debt crisis. Non-residents' portfolio investment posted a net outflow of US$1.77 billion, mainly due to reduced government bond holdings by foreign investors. Other investment exhibited a net outflow of US$8.54 billion, mainly attributable to short-term bank lending to overseas affiliates and foreign banks.
For the entire year of 2011, the current account registered a surplus of US$41.27 billion, the financial account exhibited a net outflow of US$31.62 billion, and the overall balance recorded a surplus of US$6.24 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 21, 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.