BALANCE OF PAYMENTS
For the fourth quarter of 2014, the overall balance of payments recorded a surplus of US$1.82 billion, reflecting an increase in the Bank's reserve assets. The current account posted a surplus of US$19.18 billion and the financial account showed a net outflow of US$18.40 billion.
In the current account, export growth expanded by 0.5% year on year as a significant increase in electronics exports more than offset a decrease in minerals exports. Imports contracted by 4.8% year on year, owing to a decline in imports of agricultural and industrial raw materials and capital equipment. With growing exports and reduced imports, the goods trade surplus widened by US$3.63 billion to US$14.26 billion, compared to the same period of the previous year.
The services account surplus rose to US$3.02 billion with a year-on-year increase of US$0.36 billion, mostly attributable to larger amounts of travel receipts and net proceeds from merchanting. The income account surplus shrank by US$1.12 billion year on year to US$2.63 billion, mainly owing to increased outward payments for non-residents' direct investment income. The current transfers deficit registered a year-on-year increase of US$0.02 billion to US$0.73 billion.
Overall, the current account surplus of the fourth quarter of 2014 expanded by US$2.85 billion or 17.4% year on year, as surpluses on both goods trade balance and services account offset the impact of a narrower income surplus and a wider current transfer deficit.
In the financial account, direct and portfolio investment posted net outflows of US$2.32 billion and US$14.16 billion, respectively. Residents' portfolio investment abroad exhibited a net outflow of US$15.89 billion, primarily resulting from higher investment in foreign securities by insurance companies. Non-residents' portfolio investment recorded a net inflow of US$1.74 billion, mainly accounted for by increasing foreign investment in the Taiwanese stock markets. Financial derivatives posted a net outflow of US$0.26 billion, while other investment showed a net outflow of US$1.66 billion as banks utilized a foreign currency liquidity flush to increase repayments for foreign borrowings.
For the year of 2014 as a whole, the current account registered a surplus of US$65.34 billion, the financial account exhibited a net outflow of US$53.05 billion, and the overall balance recorded a surplus of US$13.02 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 May 20, 2015.
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.