BALANCE OF PAYMENTS
PRESS RELEASE Release Date: November 20, 2014
BALANCE OF PAYMENTS
For the third quarter of 2014, the overall balance of payments recorded a surplus of US$4.18 billion, reflecting an increase in the Bank's reserve assets. The current account posted a surplus of US$15.80 billion and the financial account showed a net outflow of US$11.48 billion.
In the current account, exports grew by 6.7% over the same period last year, supported by increased exports of electronics. Imports also expanded by 7.4% year on year, as imports of agricultural and industrial raw material and capital equipment rose. With a larger increase in exports than in imports, the goods trade surplus widened by US$0.24 billion to US$10.72 billion, compared to the same period of the previous year.
The services account recorded a surplus of US$2.40 billion, with a year-on-year increase of US$0.36 billion on account of increases in travel receipts and net proceeds from merchanting. The income account ran a surplus of US$3.55 billion with an increase of US$0.18 billion from the same period last year, mainly attributable to increased investment income from foreign exchange assets and a rise in banks' interest income. The current transfers deficit narrowed by US$0.12 billion year on year to US$0.87 billion.
Overall, for the third quarter of 2014, the current account surplus rose by US$0.90 billion or 6.1% year on year, as a result of increases in surpluses for goods, services and income and a narrower current transfers deficit.
In the financial account, direct and portfolio investment registered net outflows of US$2.16 billion and US$23.52 billion, respectively. Residents' portfolio investment abroad exhibited a net outflow of US$20.34 billion, mainly owing to greater investment in foreign debt securities by insurance companies. Non-residents' portfolio investment recorded a net outflow of US$3.18 billion, mostly accounted for by reduced foreign investment in the Taiwanese stock markets. Financial derivatives posted a net inflow of US$0.24 billion, while other investment showed a net inflow of US$13.96 billion, mainly attributable to overseas deposits withdrawal by the private sector, and decreasing overseas lending and increasing foreign borrowing by the banking sector.
For the first three quarters of 2014, the current account registered a surplus of US$47.76 billion, the financial account showed a net outflow of US$35.10 billion, and the overall balance recorded a surplus of US$11.20 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 26, 2015.
2. For the release schedule for the coming months, please check the CBC website at http://www.cbc.gov.tw/mp2.html.