BALANCE OF PAYMENTS
PRESS RELEASE Release Date: November 20, 2012
BALANCE OF PAYMENTS
For the third quarter of 2012, the overall balance of payments recorded a surplus of US$3.70 billion, reflecting an increase in the Bank's reserve assets. The current account registered a surplus of US$11.64 billion, and the financial account showed a net outflow of US$8.15 billion.
In the current account, exports contracted by 2.2% compared to the same period last year due to weak economic growth in the US and Europe. Import growth also dropped by 3.4% year on year, attributable to reduced imports of raw materials as a result of falling export-derived demand. Since the decline in imports was greater than that in exports, goods trade surplus widened by US$0.68 billion to US$8.42 billion compared to the same period of the previous year.
The services account recorded a surplus of US$0.91 billion with a decrease of US$0.06 billion from the same period last year, due to a modest increase in expenditure on trade commissions. The income account recorded a surplus of US$2.88 billion, with a year-on-year increase of US$0.66 billion, mainly due to decreased payments for non-residents' dividends and increased revenue of residents' portfolio investment abroad. Current transfers registered a deficit of US$0.55 billion, narrowing slightly by US$0.10 billion from the same period last year.
For the third quarter of 2012, the current account surplus rose by US$1.39 billion or 13.5% over the same period of the previous year, as the small decrease in services account surplus was offset by increases in surpluses on goods trade and income, as well as a narrower current transfer deficit.
In the financial account, direct and portfolio investment recorded net outflows of US$2.76 billion and US$17.33 billion, respectively. Residents' outward direct investment exhibited a net outflow of US$3.94 billion, while non-residents' inward direct investment showed a net inflow of US$1.18 billion.
Residents' portfolio investment abroad exhibited a net outflow of US$17.21 billion, the largest net outflow ever recorded, mainly due to greater investment abroad by insurance companies. Non-residents' portfolio investment posted a net outflow of US$0.11 billion, mainly reflecting reductions in their holdings of government bonds. Financial derivatives recorded a net inflow of US$0.11 billion. Other investment exhibited a net inflow of US$11.82 billion, mainly attributable to overseas deposits withdrawal and foreign borrowing by the private sector.
For the first three quarters of 2012, the current account registered a surplus of US$33.36 billion, the financial account showed a net outflow of US$19.68 billion, and the overall balance recorded a surplus of US$11.90 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 23, 2013.
2. For the release schedule for the next six months, please check the CBC website at http://www.cbc.gov.tw/ct.asp?xItem=38548&ctNode=518&mp=1.