BALANCE OF PAYMENTS
PRESS RELEASE Release Date: August 20, 2014
BALANCE OF PAYMENTS
For the second quarter of 2014, the overall balance of payments recorded a surplus of US$4.39 billion, reflecting an increase in the Bank's reserve assets. The current account posted a surplus of US$16.47 billion and the financial account showed a net outflow of US$14.37 billion.
In the current account, exports grew by 2.9% over the same period last year, supported by increased exports of electronics. Imports also expanded by 2.8% year on year, as imports of consumer products and agricultural and industrial raw material rose. With a larger increase in exports than in imports, the goods trade surplus widened by US$0.34 billion to US$10.78 billion, compared to the same period of the previous year.
The services account recorded a surplus of US$2.53 billion, with a year-on-year increase of US$0.70 billion on account of increases in travel receipts and net proceeds from merchanting. The income account ran a surplus of US$3.99 billion with an increase of US$1.58 billion from the same period last year, mainly attributable to a rise in banks' interest income abroad and increased revenues from residents' outward direct investment. The current transfers deficit widened by US$0.18 billion year on year to US$0.84 billion.
Overall, for the second quarter of 2014, the current account surplus rose by US$2.44 billion or 17.4% year on year, as a wider current transfers deficit was offset by increases in surpluses on goods trade, services and income accounts.
In the financial account, direct and portfolio investment registered net outflows of US$3.19 billion and US$0.90 billion, respectively. Residents' portfolio investment abroad exhibited a net outflow of US$10.35 billion, mainly owing to greater investment abroad by insurance companies. Non-residents' portfolio investment recorded a net inflow of US$9.45 billion, mostly accounted for by increasing foreign investment in the Taiwanese stock markets. Financial derivatives posted a net inflow of US$0.17 billion, while other investment showed a net outflow of US$10.46 billion as banks' overseas deposits and lending increased.
For the first half of 2014, the current account registered a surplus of US$31.92 billion, the financial account showed a net outflow of US$27.47 billion, and the overall balance recorded a surplus of US$7.02 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 November 20, 2014.
2. For the release schedule for the coming months, please check the CBC website at http://www.cbc.gov.tw/mp2.html.